on January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of fiev years is estimated to be 62000. calculate the depreciation expensive per year using the straight line method

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Business

Alena Rich

19 June, 03:04

on January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of fiev years is estimated to be 62000. calculate the depreciation expensive per year using the straight line method

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Answers (1)

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Cassie Cooke · Answer 1

Annual depreciation = $189,600

Explanation:

Giving the following information:

On January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be 62000.

Annual depreciation = (original cost - salvage value) / estimated life (years)

Annual depreciation = (1,010,000 - 62,000) / 5 = $189,600