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Ronch [10]
3 years ago
10

Martin Company purchases a machine at the beginning of the year at a cost of $76,000. The machine is depreciated using the strai

ght-line
method. The machine's useful life is estimated to be 4 years with a $9,000 salvage value. Depreciation expense in year 4 is:
Social Studies
1 answer:
pickupchik [31]3 years ago
5 0

Answer:

Depreciation expense for year 4 = $16,750

Explanation:

We know,

Depreciation expense under the straight-line  method = (Cost price - Salvage value) ÷ Useful life

We know that the depreciation expense under the straight-line  method is always equal over the useful life.

Given,

The cost price of a machine = $76,000

Salvage value = $9,000

Useful life = 4 years

Therefore,

Depreciation expense for year 4 = ($76,000 - $9,000) ÷ 4 years

Depreciation expense for year 4 = $67,000 ÷ 4 years

Depreciation expense for year 4 = $16,750

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