The allegheny corporation purchased machinery for

1 answer:

6 0

The complete information is that on January 1 2016 the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. With that in mind, the machine is expected to produce 220,000 units during its life. In that case we can calculate a depreciation for 2016 and 2017 and doing it with one of the methods which is called Straight-Line Depreciation which states that:
Choose Numerator: / Choose Denominator: = Annual Depreciation Expense 
Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense

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