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AlekseyPX
2 years ago
11

Machinery was purchased for $340,000 on January 1, 2017. Freight charges amounted to $14,000 and there was a cost of $40,000 for

building a foundation and installing the machinery. It is estimated that the machinery will have a $60,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2018, if the straight-line method of depreciation is used
Business
1 answer:
creativ13 [48]2 years ago
4 0

Answer:

$133,600

Explanation:

Straight line depreciation expense = (cost of asset - salvage value) / number of year

Cost of asset = $340,000 + $14,000 + $40,000 = $394,000

($394,000 - $60,000) / 5 = $66,800

The amount of accumulated depreciation at December 31, 2018 =  $66,800 x 2 = $133,600

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