On January 1, 2013, the Daley Corporation Paid $9,000 for Major

Essay

On January 1, 2013, the Daley Corporation paid $9,000 for major improvements on a two-year-old manufacturing machine. Although the expenditure did not change the expected useful life, it greatly increased the productivity of the machine. Prior to this transaction, the machine account in the general ledger was listed at $42,000, and the accumulated depreciation account was $10,000. Daley uses the straight-line depreciation method. The estimated useful life was six years, and the estimated salvage value was $2,000.
Required:
a) Prepare the entry in general journal form for the January 1, 2013 transaction. b) Immediately after the January 1, 2013 transaction, what is the book value of the asset on Daley books?
c) Compute the depreciation for the machine for December 31, 2013.