Yearly depreciation expenses


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?

A) $1,000,000

B) $1,001,667

C) $1,500,000

D) $1,501,667

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Accounting Basics: Yearly depreciation expenses
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