machine depreciation (straight-line) answers and explanation
Machine Depreciation (Straight-Line) Step by step Solution with Explanation
Your question:
ABC purchased a machine on Jan 1, 2025 for $56606 with an estimated useful life of 14 years and no salvage value
Machine Depreciation (Straight-Line) Answers and Explanation
Straight-Line Depreciation Calculation
Given the following information:
Remaining useful life (revised) = 8 years
We can calculate the straight-line depreciation expense and carrying value for 2027.
Depreciation for the first 2 years = $4,043.29/year * 2 years = $8,086.58
Carrying value on Jan 1, 2027 = Cost of machine - Depreciation over 2 years = $56,606 - $8,086.58 = $48,519.42
a. The carrying value of the machine on Jan 1, 2027, is $48,519.42. b. The depreciation expense for 2027 is $4,043.29.
