Question

A machine costing $57,000 with a six-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation.

Answer 1

$9,000

Step-by-step explanation:

The computation of the depreciation expense using the straight-line method is shown below;

= (Purchase value of machinery - residual value) ÷ (estimated useful life)

= $54,000 ÷ 6 years

= $9,000

The depreciation cost is the cost which is come after considering the salvage value and the same is to be considered

Hence, the depreciation expense is $9,000