Essay
Stone Enterprise purchased a machine on January 3, 2008. The machine cost $46,000 with an estimated salvage value of $2,000 and an estimated useful life of 10 years. As a result of technological improvements, a revision of the machine's useful life and estimated salvage value was made. On January 1, 2011, the equipment was estimated to last through 2012 with an estimated value at that time of $500. Stone uses the straight-line method for depreciation.
Prepare the journal entry to record depreciation on December 31, 2011.
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