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Business, 28.05.2020 04:00 leeleelynn

Samson Manufacturing Company, a calendar-year company, purchased a machine for $65,000 on January 1, 20X0. At the date of purchase, Samson incurred the following additional costs: Loss on sale of old machinery $1,000 Freight-in 500 Installation cost 2,000 Testing costs prior to regular operation 300 The machine’s estimated salvage value was $5,000, and Samson estimated it would have a useful life of 20 years with depreciation being computed on the straight-line method. In January 20X2, accessories costing $3,600 were added to the machine to reduce its operating costs. These accessories neither prolonged the machine’s life nor provided any additional salvage value. Required: What should Samson record as depreciation expense for 20X2?

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Samson Manufacturing Company, a calendar-year company, purchased a machine for $65,000 on January 1,...

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