Traded in a copy machine that had been purchased for $5200 on December 29, 2009. Straight-line depreciation of the old copier has been based on estimated useful life of five years, with salvage value of $800. The new copier had a purchase price and value of $12000. Received a trade-in allowance of $3500 on the old machine and paid cash of $8500. The new copier has a useful life of five years and an estimated salvage value of $600.

Compute depreciation to nearest whole dollar, and record in journal form.

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Originally Posted by Momo12

Traded in a copy machine that had been purchased for $5200 on December 29, 2009. Straight-line depreciation of the old copier has been based on estimated useful life of five years, with salvage value of $800. The new copier had a purchase price and value of $12000. Recived a trade-in allowance of $3500 on the old machine and paid cash of $8500. The new copier has a useful life of five years and an estimated salvage value of $600.

Compute depreciation to nearest whole dollar, and record in journal form.

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Well what do you think?