Wolf Co. purchased machinery that was installed and ready for use on January 3, 2014, at a total cost of $92,000. Residual value was estimated at $12,000. The machinery will be amortized over five years using the double-declining balance method. Calculate for the year 2015, the amount Wolf should record amortization expense on this machinery. Wolf Co. has a December 31 year-end and adjusting entries are only made at year-end.

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The Answer of Wolf Co. purchased machinery that was installed and ready for use on January 3, 2014, at a total cost of $92,000. Residual value was estimated at $12,000. The machinery will be amortized over five years using the double-declining balance method. Calculate for the year 2015, the amount Wolf should record amortization expense on this machinery. Wolf Co. has a December 31 year-end and adjusting entries are only made at year-end.

Wolf Co Purchased Machinery That Was Installed and Ready for Use