Question

A machine costing $56,894 with a 6-year life and $51,236 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.

Answer 1

Answer:

$8539

Explanation:

Depreciation is a method of expensing the cost of an asset.

Yearly deprecation expense =depreciable cost / useful life

depreciable cost = cost of the machine - salvage value

51,236 / 6 = $8539.33

8539

To round off to the nearest dollar, look at the first number after the decimal, if it is less than 5, add zero to the units term, If it is equal or greater than 5, add 1 to the units term.