A machine was purchased for 37000 and depreciated for five


A machine was purchased for $37,000 and depreciated for five years on a straight-line basis under the assumption it would have a ten-year life and a $1,000 salvage value.

At the beginning of the machine's sixth year it was recognized the machine had three years of remaining life instead of five and that at the end of the remaining three years its salvage value would be $1,600.

What amount of depreciation should be recorded in each of the machine's remaining three years?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: A machine was purchased for 37000 and depreciated for five
Reference No:- TGS02592394

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)