On January 1, 20X2, Miller Corp. purchased a milling machine for $400,000. It will be depreciated on a straight line basis over 20 years. On January 1, 20X3, Miller purchased a heavy-duty lathe for $250,000, which will be depreciated on a straight line basis over 40 years.
a. Compute Miller's depreciation expense for 20X2, 20X3, and 20X4.
b. Prepare the Fixed Asset portion of the balance sheet (for these two fixed assets) as of the end of 20X2, 20X3, and 20X4.