On October 30, Cleo Co. purchased a machine for $26,000 and estimates it will use the machine for four-years with a $2,000 salvage value. Using the straight-line depreciation method, compute the machine's first year partial depreciation expense for October 30 through December 31.

Partial depreciation expense, from October 30 to December 31=$1,000

Explanation:

The depreciation base can be expressed;

depreciation base=purchase cost-salvage value

where;

purchase cost=$26,000

salvage value=$2,000

replacing;

depreciation base=26,000-2,000=$24,000

depreciation base=$24,000

annual depreciation expense=depreciation base/useful life

where;

depreciation base=$24,000

useful life=4 years

replacing;

annual depreciation expense=24,000/4=$6,000

Partial depreciation expense, from October 30 to December 31=2 months

Partial depreciation expense = (2/12) * 6,000=$1,000