Check my work Irwin, Inc.,.constructed a machine at a total cost of $68 million.

Question

Check my work Irwin, Inc.,.constructed a machine at a total cost of $68 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method. lgnoring income taxes, prepare the journal entry relating to the machine for 2018. (If no entry is required for ea transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet Record the entry relating to the machine for 2018. ?Prev 2of 9 Next o search Oo ENG T:39 AM 8/1/2018

Explanation / Answer

Sum of years' digits = 10*(10+1)/2= 55 Accumulated depreciation to date = (68000000-2000000)/55*27= $32400000 Book value at the beginning of 2018 = 68000000-32400000= $35600000 Journal entry: Depreciation expense 4.8 =(35.6-2)/7       Accumulated depreciation 4.8

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