The machine is expected to have a working life of six years


Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $6 million to buy the machine and $10,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional $3 million. The machine is expected to have a working life of six years. If straight-line depreciation is used, what are the yearly depreciation expenses in this case?

$1,000,000

$1,001,667

$1,500,000

$1,501,667

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Accounting Basics: The machine is expected to have a working life of six years
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