A Company Purchased a Machine for $75,000 That Was Expected

question 4

Essay

A company purchased a machine for $75,000 that was expected to last 6 years and have a salvage value of $6,000.At the beginning of the machine's fourth year the company decided that the machine's estimated useful life should be revised to a total of 10 years instead of 6 years.Also,the salvage value was re-estimated to be $5,500.Straight-line depreciation was used throughout the machine's life.Calculate the depreciation expense for the fourth year of the machine's useful life.

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Definitions:

Atmosphere

The layer of gases surrounding the Earth that is held in place by gravity and is composed of nitrogen, oxygen, and trace gases.

Lower Layer

Refers to the bottom or underneath sections in a stratified structure, such as atmospheric layers, soil profiles, or bodies of water.

Atmosphere

The layer of gases surrounding a planet or other celestial body, held in place by gravity.

Earth

The third planet from the Sun, uniquely characterized by its vast oceans, breathable atmosphere, and diverse ecosystems supporting life.