Martin company purchases a machine at the beginning of the year at a cost of $60,000. the machine is depreciated using the straight-line method. the machine's useful life is estimated to be 4 years with a $5,000 salvage value. depreciation expense in year 4 is:

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Peep

12 September, 00:52

Martin company purchases a machine at the beginning of the year at a cost of $60,000. the machine is depreciated using the straight-line method. the machine's useful life is estimated to be 4 years with a $5,000 salvage value. depreciation expense in year 4 is:

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Justice Tran · Answer 1

If the machine originally costs $60,000 and goes through straight-line method of depreciation, then if it has a $5,000 salvage value in 4 years, then it depreciated $55,000 in 4 years, which is about $14,000 a year. So the depreciation expense in year 4 is about $14,000.