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Oduvanchick [21]
3 years ago
7

bought a machine on January 1, 2022. The machine cost $180000 and had an expected salvage value of $26000. The life of the machi

ne was estimated to be 4 years. The depreciation expense using the straight-line method of depreciation is
Business
1 answer:
iren2701 [21]3 years ago
7 0

Answer:

$38,500

Explanation:

The computation of the depreciation expense  is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($180,000 - $26,000) ÷ (4 years)

= ($154,000) ÷ (4 years)  

= $38,500

In this method, the depreciation is same for all the remaining useful life

We simply applied the above formula so that the depreciation expense could come

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