Beta Inc. acquired a machine on January 1, 2010 for $40,000. Beta paid $10,000 cash and signed a note for the balance. On January 3, it paid $1,000 freight costs for delivery of the machine. On January 5, Beta paid
$2,000 to have the machine installed. On December 30, Beta paid $500 for annual maintenance on the machine. On December 31, Beta recorded depreciation using the straight-line method. Beta expects to use the machine
for 10 years at which time it expects a residual value of $3,000. Prepare the journal entry to record depreciation on December 31, 2010.

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The Answer of Beta Inc. acquired a machine on January 1, 2010 for $40,000. Beta paid $10,000 cash and signed a note for the balance. On January 3, it paid $1,000 freight costs for delivery of the machine. On January 5, Beta paid
$2,000 to have the machine installed. On December 30, Beta paid $500 for annual maintenance on the machine. On December 31, Beta recorded depreciation using the straight-line method. Beta expects to use the machine
for 10 years at which time it expects a residual value of $3,000. Prepare the journal entry to record depreciation on December 31, 2010.

Beta Inc Acquired a Machine on January 1, 2010 for $40,000