Response to the following problem:
A mimeograph machine was acquired for use in the office on July I of the current year. The C08t of the machine was $3,250. It has a useful life of 8 years and a salvage value estimated to be 550. Using the Straight ..line method, answer the following questions: .
1. What is the annual rate of depreciation?
2. What is the depreciable value of the asset?
3. What is the amount of annual depreciation to be recognized?
4. What is the amount of depreciation to be recognized for the first year? (July I-December 31)
5. What is the adjusting entry to be recorded for depreciation at the end of the first calendar year?
6. What is the balance in the accumulated depreciation account at the end of the second year after the appropriate adjusting entry?
7. When the asset has been fully depreciated, what is its book value?