Answer and Explanation:
The journal entry is shown below:
Depreciation expense Dr $398,000
To Accumulated depreciation $398,000
(Being the depreciation expense is recorded)
For recording this we debited the depreciation expense as it increased the expenses and credited the accumulated depreciation as it decreased the value of the assets
The computation of the depreciation expense is as follows
Cost of the asset $3,250,000
Less: accumulated
depreciation till date ($1,801,000)
Undepreciation cost $1,449,000
Less:
Estimated residual value ($255,000)
Value for remaining
3 years $1,194,000
Divided by 3 years ÷ 3
Depreciation expense $398,000
