A machine costs $400,000 with salvage value of 20,000. Life of it is six years. In the first year, 4000 hours; in the second year, 6000 hours and 8000 hours on the third year. The expected flow of the machine is 38000 hours in six years. What is the depreciation at the end of the first year and third year?

A machine costs $400,000 with salvage value of 20,000. Life of it is six years. In the first year, 4000 hours; in the second year, 6000 hours and 8000 hours on the third year. The expected flow of the machine is 38000 hours in six years. What is the depreciation at the end of the first year and third year?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....

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