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

question 154

Essay

A company purchased a machine for $75,000 that was expected to last 6 years and to have a residual value of $6,000. At the beginning of the machine's fourth year the company decided that the estimated useful life should be revised to a total of 10 years instead of 6 years. Also, the residual 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:

I-based Statements

Personal statements that start with or primarily use the pronoun "I" to express the sender's thoughts, feelings, or actions.

You-attitude

A communication approach that focuses on the recipient's needs and interests, emphasizing respect and positive regard.

Paraphrasing

The act of rewording or restructuring text while retaining the original meaning, often for clarity or simplicity.

Implied Meaning

The underlying, suggested, or inferred significance of a word, phrase, or text, beyond its explicit or direct meaning.