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What is the amount of depreciation expense SLR would record for the year 20x6 on this machine?

What is the amount of depreciation expense SLR would record for the year 20x6 on this machine?

FINANCIAL ACCOUNTING
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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On January 1, 20x3, SLR Corporation purchased a machine for $571,000. In 20x3, 20x4 and 20x5, SLR depreciated the machine on a straight-line basis with an estimated useful life of eight years and a $111,000 residual value. In 20x6, SLR changed its business strategy and now believes that the machine will be used for only another two years, but does not believe the residual value has changed. What is the amount of depreciation expense SLR would record for the year 20x6 on this machine? Multiple Choice $143,750. $133,375. $92,000. $84,500.
Transcribed Image Text:On January 1, 20x3, SLR Corporation purchased a machine for $571,000. In 20x3, 20x4 and 20x5, SLR depreciated the machine on a straight-line basis with an estimated useful life of eight years and a $111,000 residual value. In 20x6, SLR changed its business strategy and now believes that the machine will be used for only another two years, but does not believe the residual value has changed. What is the amount of depreciation expense SLR would record for the year 20x6 on this machine? Multiple Choice $143,750. $133,375. $92,000. $84,500.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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