Westfield Manufacturing Co. purchased a used CNC machine at a cost of $420,000 in January 2020. The company's estimated useful life of this equipment is 8 years, and the estimated salvage value is $60,000. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2020, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2022, after the third year of the equipment's life.

Westfield Manufacturing Co. purchased a used CNC machine at a cost of $420,000 in January 2020. The company's estimated useful life of this equipment is 8 years, and the estimated salvage value is $60,000. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2020, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2022, after the third year of the equipment's life.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 13P

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