Maxine,Inc.bought a machine on January 1,2012 for $48,000.The machine is expected to last for 8 years,after which it will be worthless.How much accumulated depreciation will Maxine report at December 31,2012?

Question

Quizplus · Accepted Answer

The machine has only been owned for 1 year out of its expected 8-year useful life, so the accumulated depreciation for the first year will be the cost of the machine divided by its expected useful life, which is $48,000/8 = $6,000. Therefore, the accumulated depreciation that Maxine will report at December 31, 2012 is $6,000.