A machine costing $54,000 with a 6-year life and $6,000 residual value was purchased January 2, 2005. Compute the yearly depreciation expense using straight-line depreciation. Show all calculations

1.08K views
0

A machine costing $54,000 with a 6-year life and $6,000 residual value was purchased January 2, 2005. Compute the yearly depreciation expense using straight-line depreciation. Show all calculations

0

Answer:

yearly depreciation expense using straight-line depreciation = $ 8000

Working notes for the above answer is as under

we have been given that,

A machine costing $54,000

with a 6-year life and

residual value was $6,000

depreciation expense using straight-line depreciation

= Cost -salvage value / life years

= 54000 -6000 /6 years

=8000 year

yearly depreciation expense using straight-line depreciation = $ 8000

You are viewing 1 out of 0 answers, click here to view all answers.

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved