Question

ALL the following evestions and show your work. This in an indieldual assigument. PLEAS DO NOT SHARE roUn WORE WITH OTHE STUDENTS. 1) Daly fnterpives is purthaying a 510.6 milion machine. It will cos $56000 to transpert and ingall the machine. The machise has a depreciable ife of ala yearsand wil have 51 milson sahage value. If baily uies straight-Ine depreciation, what are the deprecation expenses abociated with the machine?

Answer 1

The annual depreciation expense of Daly Enterprises' $10.6 million machine, after adding transportation and installation costs and subtracting the salvage value, then divided by its ten-year life span, is $965,600.

Step-by-step explanation:

The question involves calculating the depreciation expenses for a piece of machinery using the straight-line depreciation method in accounting. Daly Enterprises is purchasing a $10.6 million machine, and the costs to transport and install it are $56,000. The machine has a depreciable life of 10 years and will have a $1 million salvage value.

To calculate the annual depreciation expense, we subtract the salvage value from the initial cost of the machine, including the installation and transportation costs, and then divide the result by the depreciable life of the machine:

Cost of machine + transport and installation costs - salvage value = depreciable amount

$10,600,000 + $56,000 - $1,000,000 = $9,656,000

Annual Depreciation Expense = Depreciable amount / Depreciable life

Annual Depreciation Expense = $9,656,000 / 10 years = $965,600

Therefore, the annual depreciation expense associated with the machine is $965,600.