Martin Company purchases a machine at the beginning of the year at a cost of $76,000. The machine is depreciated using the straight-line

method. The machine's useful life is estimated to be 4 years with a $9,000 salvage value. Depreciation expense in year 4 is:

Depreciation expense for year 4 = $16,750

Explanation:

We know,

Depreciation expense under the straight-line method = (Cost price - Salvage value) : Useful life

We know that the depreciation expense under the straight-line method is always equal over the useful life.

Given,

The cost price of a machine = $76,000

Salvage value = $9,000

Useful life = 4 years

Therefore,

Depreciation expense for year 4 = ($76,000 - $9,000) : 4 years

Depreciation expense for year 4 = $67,000 : 4 years

Depreciation expense for year 4 = $16,750