Happy Hospital acquired an MRI machine on January 1, 2018
$8,375,000. The delivery, installation and final cost of the item was $125,000
Calibrate the MRI. The MRI is good for 5 years.
It is likely that the item will be sold for $100,000 by time
Using straight-line depreciation method, prepare a schedule
Showing the annual depreciation expense as well as the accumulated depreciation
For each of the 5 year periods.
Show the assets and their accumulated depreciation.
The December 31, 2018 balance sheet
Prepare journal entries to record the asset’s acquisition,
annual depreciation for each year and the asset’s sale for
Accumulated Depr Net asset value
Property, Plant & Equipment
This is a lower amount: Accumulated appreciation
Net Asset value
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