Cameron Industries Is Purchasing a New Chemical Vapor Depositor in Order

question 68

Multiple Choice

Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips.It will cost $6 million to buy the machine and $10,000 to have it delivered and installed.Building a clean room in the plant for the machine will cost an additional $3 million.The machine is expected to have a working life of six years.If straight-line depreciation is used,what are the yearly depreciation expenses in this case?

• A)$1,000,000
• B)$1,001,667
• C)$1,500,000
• D)$1,501,667

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