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alina1380 [7]
3 years ago
9

(Chapter Supplement) Irish Industries purchased a machine for $65,000 and is depreciating it with the straight-line method over

a life of 10 years, using a residual value of $3,000. At the beginning of the sixth year, a major overhaul was made costing $5,000, and the total estimated useful life was extended to 13 years with a residual value of $3,000. Depreciation expense for Year 6 is: $1,885 $2,000 $3,250 $3,625 $4,500
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer:

$4,500

Explanation:

depreciation expense

= [revised cost of asset - salvage value]/[remaining life of the assets]

=  [$39,000 - $3,00]/[8 years]

= $4,500

Therefore, The Depreciation expense for Year 6 is $4,500.

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