Martin Motors purchased a machine that will help diagnose problems with engines. The machine cost $210,000

Martin Motors purchased a machine that will help diagnose problems with engines.  The machine cost $210,000 on January 10, 2010 and a residual value of $10,000 was anticipated, with a useful life of 5 years.  These statistics are available:

DDB

Gross Profit                                                   400,000

Operating expenses                                        180,000

Income before depreciation and taxes             220,000

Depreciation                                                  84,000

Income before taxes                                    136,000

Taxes  (35%)                                               47,600

Net Income                                                 88,400

Martin Motors realized at the beginning of 1012 that the machine would last an additional 8 years.  Martin Motors uses the DDB method.

Required:

Prepare the appropriate journal entry to record the depreciation expense for 2012