Ask Question
28 March, 21:41

On January 1, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000. Using the straight-line method, the amount of depreciation that should be recorded during year 1, is approximately

+3
Answers (1)
  1. 28 March, 22:05
    0
    Annual depreciation = $10,000

    Explanation:

    Giving the following information:

    The total acquisition cost was $33,000. The machine has an estimated useful life of 3 years and a salvage value of $3,000.

    To calculate the depreciation expense under the straight-line method, we need to use the following formula:

    Annual depreciation = (original cost - salvage value) / estimated life (years)

    Annual depreciation = (33,000 - 3,000) / 3

    Annual depreciation = $10,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 1, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,000. The machine ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers