Ask Question
2 January, 20:57

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

+5
Answers (1)
  1. 3 January, 00:47
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Martin Company purchases a machine at the beginning of the year at a cost of $76,000. The machine is depreciated using the straight-line ...” in 📘 Social Studies 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