Wright Manufacturing Co. acquired 20 similar machines at the beginning of 2006 for a total cost of $75,000. The machines have an average life of five years and no residual value. The group depreciation method is employed in writing off the cost of the machines. They were retired as follows:
2 machines at the end of 2008
4 machines at the end of 2009
8 machines at the end of 2010
6 machines at the end of 2011
Assume the machines were not replaced.
Instructions:
Give the entries to record the retirement of the machines and the periodic depreciation for the years 2006-2011 inclusive.