A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end of its useful life. A monthly depreciation expense of $600 was recorded using the straight-line method. The annual depreciation rate is a. 12.8% b. 20% c. 1.6% d. 16%

A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end of its useful life. A monthly depreciation expense of $600 was recorded using the straight-line method. The annual depreciation rate is a. 12.8% b. 20% c. 1.6% d. 16%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help me with show all calculation thanku

A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end of its useful life. A monthly
depreciation expense of $600 was recorded using the straight-line method. The annual depreciation rate is
a. 12.8%
b. 20%
c. 1.6%
d. 16%

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Step 1: Introduce to depreciation expense

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Step 2: Working for Annual Depreciation Expense and Depreciable Cost

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Step 3: Working for Annual Depreciation Rate

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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