Marigold Company purchased machinery on January 1, 2025, for $83,200. The machinery is estimated to have a salvage value of $8.320 after a useful life of 8 years (a) Your Answer Correct Answer Your answer is correct. Compute 2025 depreciation expense using the straight-line method. Depreciation expense S (b) eTextbook and Media Solution Your answer is incorrect. 9360 Depreciation expense Attempts: 3 of 3 used Compute 2025 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2025

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.