Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
Given the following, calculate the yearly depreciation expenses using the straight-line method. Track, $30,000; residual value, $5,000; estimated useful, 5 years.
On January 1, Lynn Co. bought a machine for $50,000 with an estimated life of 8 years. The residual value of the machine is $10,000. This machine is expected ober is useful life to produce 60,000 units. This machine is expected to produce 9,000 units the first year and 16,000 in year 2. Calculate the depreciation expense for the mchine in years 1 and 2.
Using MACRS, what would be the first year's depreciation for a waste water sewer plant that cost $700,000?
