ercise 9-5 aroah Company purchased a new machine on October 1, 2017, at a cost o
ID: 2514520 • Letter: E
Question
ercise 9-5 aroah Company purchased a new machine on October 1, 2017, at a cost of $89,200. The company estimated that the machine has a salvage value of $8,880. The machine is expected to be used for 72,500 working hours during its 8-year Me. omoute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end. (Round answers to o decimal places, e.g. 5,275.) 2017 2018 Click if you would like to Sho? Work for this question: Open Show Work By accessing this Question Assistance, you ill learn while you earn points based on the Point Potential Policy set by your instructor. w SAVE POR LATER answer this question correctly in your first 8Explanation / Answer
Solution:
2017
2018
Depreciation expense under the straight-line method
2,510
10,040
?
Working:
Cost
89,200
Less: Salvage value
8,880
Depreciable cost
80,320
Useful life
8
Annual Depreciation
10040
2017 Depreciation
Annual depreciation
10,040
Months machine in use
3
2017 partial depreciation
2510
(10,040 * 3/12)
2017
2018
Depreciation expense under the straight-line method
2,510
10,040
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