Mohr company purchases a machine at the beginning of the year at a cost of $40,000. the machine is depreciated using the straight-line method. the machine's useful life is estimated to be 8 years with a $9,000 salvage value. depreciation expense in year 2 is:

Question

Josue Rollins

Business

4 October, 13:36

Mohr company purchases a machine at the beginning of the year at a cost of $40,000. the machine is depreciated using the straight-line method. the machine's useful life is estimated to be 8 years with a $9,000 salvage value. depreciation expense in year 2 is:

+1

Answers (1)

Know the Answer?

Kyle James · Answer 1

With straight line depreciation method,

Yearly depreciation = (Cost-Salvage value) / life

Therefore,

Yearly depreciation expense = (40000-9000) / 8 = $3875

Therefore, depreciation expense for year 2 = $3875