A machine with a useful 10 year life is to be depreciated, Business Economics

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A machine with a useful 10 year life is to be depreciated

A machine with a useful 10 year life is to be depreciated by the MACRS method over 7 years. The machine has a first cost of $35,000 with a $5,000 salvage value. Its annual operating cost is $7,000 per year. The depreciation charge in year three is nearest to:

3600

4320

5860

6121

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Business Economics: A machine with a useful 10 year life is to be depreciated

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Business Economics: A machine with a useful 10 year life is to be depreciated

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