A machine has a cost of $15,000,an estimated residual value of $3,000,and an estimated useful life of four years.The machine is being depreciated on a straight-line basis.At the end of the second year,what amount will be reported for accumulated depreciation?

Question

Quizplus · Accepted Answer

The annual depreciation expense is calculated as (Cost - Residual Value) / Useful Life = ($15,000 - $3,000) / 4 = $3,000 per year. After two years, the accumulated depreciation will be 2 * $3,000 = $6,000.

A Machine Has a Cost of $15,000,an Estimated Residual Value