Ask Question
4 January, 06:30

On October 30, Cleo Co. purchased a machine for $26,000 and estimates it will use the machine for four-years with a $2,000 salvage value. Using the straight-line depreciation method, compute the machine's first year partial depreciation expense for October 30 through December 31.

+1
Answers (1)
  1. 4 January, 09:05
    0
    Partial depreciation expense, from October 30 to December 31=$1,000

    Explanation:

    The depreciation base can be expressed;

    depreciation base=purchase cost-salvage value

    where;

    purchase cost=$26,000

    salvage value=$2,000

    replacing;

    depreciation base=26,000-2,000=$24,000

    depreciation base=$24,000

    annual depreciation expense=depreciation base/useful life

    where;

    depreciation base=$24,000

    useful life=4 years

    replacing;

    annual depreciation expense=24,000/4=$6,000

    Partial depreciation expense, from October 30 to December 31=2 months

    Partial depreciation expense = (2/12) * 6,000=$1,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On October 30, Cleo Co. purchased a machine for $26,000 and estimates it will use the machine for four-years with a $2,000 salvage value. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers