On January 1, 2011, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2011 and 12,000 in 2012.
What is depreciation expense for 2012 if the company uses straight-line depreciation?

Question

Quizplus · Accepted Answer

Depreciation expense = (Cost of machine - Estimated salvage value) / Estimated useful life= (40,000 - 4,000) / 6= 36,000 / 6= 6,000

On January 1, 2011, Zane Manufacturing Company Purchased a Machine