Asked by Vansh Arora on Jul 16, 2024
Verified
Determine the machines' first year depreciation under the straight-line method.
A) $27,000.
B) $29,025.
C) $25,800.
D) $23,779.
E) $24,000.
Straight-Line Method
This is a depreciation method where an equal amount of the asset's cost is allocated as an expense each year over its useful life.
Salvage Value
The expected residual cost of an asset by the end of its functional life.
- Use multiple depreciation formulas to calculate depreciation outlays.
Verified Answer
MM
Michelle MartinezJul 20, 2024
Final Answer :
E
Explanation :
Under the straight-line method, depreciation expense is calculated as (Cost - Salvage Value) / Useful Life. For this machine, it's ($135,000 - $15,000) / 5 = $24,000 per year.
Learning Objectives
- Use multiple depreciation formulas to calculate depreciation outlays.
Related questions
Determine the Machines' First Year Depreciation Under the Units-Of-Production Method
What Journal Entry Would Be Needed to Record the Machines ...
What Journal Entry Would Be Needed to Record the Machines ...
If the Disposal of an Asset Occurs During the Year ...
The Units-Of-Activity Depreciation Method Provides a Good Match of Expenses ...