Tomko Company purchased machinery with a list price of $96,000.They were given a 10% discount by the manufacturer.They paid $600 for shipping and sales tax of $4,500.Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $30,000.If Tomko uses straight-line depreciation, annual depreciation will be

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The cost of the machinery is $96,000 - 10% discount + $600 shipping + $4,500 sales tax = $91,200. Depreciable cost = $91,200 - $30,000 residual value = $61,200. Annual depreciation = $61,200 / 10 years = $6,150.

Tomko Company Purchased Machinery with a List Price of $96,000