. On January 1, 2010, Farmer Inc. purchased five machines at a cost of $14,000 each. The company adopted the
group (straight-line) depreciation method, using an eight-year life with a $2,800 salvage value per machine. Correct depreciation was recorded in 2010 and 2011. On January 1, 2012, one of the machines was sold for $6,500. On January 3, 2012, a new unrelated piece of equipment was purchased for $15,000 with no salvage value and a six-year life. It will be depreciated using the straight-line method.
journal entries for
January 1, 2012
December 31, 2012, to record depreciation expense