Ask Question
12 March, 03:41

Carson Company purchased a piece of factory machinery for an assembly line for $560,000. The estimated salvage value is $28,000, and the estimated output (usage) is 10,000 hours over the life of the asset. Carson used the machine for 1,500 hours in the current year. The activity method will be used for depreciation. What is the depreciation expense on this asset

+3
Answers (1)
  1. 12 March, 05:05
    0
    Dereciation expense for the year is $79800

    Explanation:

    The depreciation expense will be calculated on the value of machine that is eligible for depreciation. The value can be calculated by deducting the salvage value from the cost.

    The depreciable value = 560000 - 28000 = $532000

    The depreciation expense for the year will be based on 1500 hours. The total hours over the useful life is 10000 hours.

    Depreciation expense for the year = 532000 * 1500 / 10000 = $79800
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Carson Company purchased a piece of factory machinery for an assembly line for $560,000. The estimated salvage value is $28,000, and the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers