Calculate depreciation expense


Problem:

Plummer Industries purchased a machine for $45,400 and is depreciating it with the straight line method over a life of 8 years, using a residual value of $1,400. At the beginning of the sixth year, an extraordinary repair was made costing $7,500, the estimated useful life was extended to 13 years, and no change was made to the estimated residual value.

Required:

Question: Calculate depreciation expense for year 6.

Note: Please provide through step by step calculations.

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Accounting Basics: Calculate depreciation expense
Reference No:- TGS0885222

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