Front Range Tooling Inc. started business in March Year 1 and had several fixed asset transactions during Year 1 and Year 2. The company uses straight-line depreciation starting in the month after the purchase of the asset. When the company disposes of an asset, depreciation is taken for the entire month of disposal. The company is highly profitable and, in compliance with allowable tax laws, expensed all Year 1 and Year 2 asset purchases on the company’s tax returns.
Using the information located in the exhibits, prepare a schedule of the changes in the machinery and equipment account for Year 2. In the Description column, select the transactions that increased or decreased machinery and equipment during the year. In the Amount column, enter the appropriate amount. Leave unused rows (if any) blank.The ending balance will be calculated for you.
Machinery and Equipment Schedule
Opening Balance – January 1, Year 2
Ending Balance – December 31, Year 2
Calculate Front Range’s depreciation expense for Year 2. Enter the appropriate amounts in the associated boxes. Total depreciation expense will be calculated for you. If a value is zero, enter a zero (0).