Answer:
First we must determine the total cost of the machine:
total cost = $178,000 + $2,480 + $1,160 = $181,640
Now we must find the depreciable value:
depreciable value = total cost - salvage value = $181,640 - $14,000 = $167,640
since the machine is going to be used for six years, the depreciation expense per year = depreciable value / useful life
depreciation expense per year = $167,640 / 6 years = $27,940
if it was depreciated during 5 years, the total depreciation expense would be: $27,940 per year x 5 years = $139,700
If the machine was depreciated before time, and sold only at its salvage value, Onslow Corp. should report a loss of $27,940.
