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Bolan Company purchased a tooling machine on January 3, 2012 for $500,000. The machine was being...

Bolan Company purchased a tooling machine on January 3, 2012 for $500,000. The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no residual value. At the beginning of 2019, the company paid $125,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total). What should be the depreciation expense recorded for the machine in 2019? $

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Answer #1

Annual deprecation = $500,000/10 = $50,000 January 3, 2012 to beginning of 2019 = 7 years Accumulated depreciation = $50,000*

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