After 4 Years, a Machine Had an Accumulated Depreciation of $38,000

question 26

Short Answer

After 4 years, a machine had an accumulated depreciation of $38,000. The machine had an anticipated life of 8 years and a residual value of $5,000. If the current book value after 4 years is $28,000 and the machine has only 2 years of useable life left, how much will be depreciated in Year 5 and in Year 6 using the straight-line method of depreciation, and assuming the residual value is still $5,000?

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Definitions:

Chelicerates

Arthropod group with specialized feeding structures (chelicerae) and no antennae; arachnids and horseshoe crabs.

Mites

Small arthropods belonging to the class Arachnida, often parasitic, affecting plants, animals, and humans.

Horseshoe Crabs

Ancient marine arthropods known for their distinctive horseshoe-shaped carapaces and important role in medical research.

Scorpions

Arachnids known for their venomous stings, eight legs, and distinctive extended body with a segmented tail.