CALCULATOR PRIN T?R Exercise 9-5 Oriole Company purchased a new machine on Octob

Question

CALCULATOR PRIN T?R Exercise 9-5 Oriole Company purchased a new machine on October 1, 2017, at a cost of $90,240. The company estimated that the machine has a salvage value of $8,800. The machine is expected to be used for 70,300 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to 0 decimal places,e.g.s,a7s 2017 2018 The depreciation expense under the straight-ine method s Question Attempts: 0 of 1 used SAVE rOR LATEOURNEY ANIWE

Explanation / Answer

Depreciation for the year 2017 = $ 2,545

Depreciation for the year 2018 = $10,180

Depreciation Expenses using Straight Line

Straight Line Depreciation = ( Cost of the asset – Salvage Value ) / Usefull Life

Depreciation Expense per year = ($90,240 - $8,800) / 8 Years = $10,180

Straight Line Depreciation for the year 2017 = $10,180 x 3/12 = $ 2,545

Straight Line Depreciation for the year 2018 (for the whole year) = $10,180

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