Francisco owns a machine that it purchased on July 1,2016 for $600,000.The machine had an estimated useful life of 8 years and an estimated residual value of $10,000.The company uses straight-line depreciation and records monthly depreciation.The machine was sold on December 31,2021 for $350,000.What was the depreciation expense for 2016?

Question

Quizplus · Accepted Answer

B)(600,000 - 10,000)/ 8 years × 6/12 = 36,875

Francisco Owns a Machine That It Purchased on July 1,2016