Problem: Monumental Products Corp. had recently purchased a new machinery at a cost of $450,000. Management estimates that the equipment will have a useful life of 15 years and no salvage value at the end of the period.
If the straight-line depreciation method is used for financial reporting, calculate the following:
A) Annual depreciation expense.
B) Accumulated depreciation at the end of years 1 through 5.
C) If this was the company's only fixed asset, what would the Balance Sheet account, Fixed Assets (net) show at the end of years 1 and 5?