solution

On 1-4-2015 LOTUS company imported a machine from China with a value of $73,000 and paid it the following expenses: freight $1,000, customs duties $500, fire insurance $150, shipping insurance $300, installation $200, and annual $100. – The productive life of the machine has been estimated at five years or 165,000 units and the scrap value is $3000 – On 4-1-2020 LOTUS sold the machine for $5000. What is required: 1. Calculate the cost of the machine and record the necessary entry on 1-4-2015: 2. The value of the depreciation expense for each of the next five years using the straight-line and decreasing-line method: 3. Proof of sale of the machine: