Question: XYZ Corporation recently purchased machinery for its manufacturing operations. The machinery has an expected useful life of 10 years and no salvage value. XYZ Corporation uses the straight-line depreciation method. If the machinery costs $500,000, what would be the depreciation expense for the first year?   Options: a) $50,000 b) $45,000 c) $55,000 d) $40,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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XYZ Corporation recently purchased machinery for its manufacturing operations. The machinery has an expected useful life of 10 years and no salvage value. XYZ Corporation uses the straight-line depreciation method. If the machinery costs $500,000, what would be the depreciation expense for the first year?

 

Options:

a) $50,000

b) $45,000

c) $55,000

d) $40,000

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