Depreciation: It is the amount of expense charged due to the use of fixed assets. The reason for charging depreciation is to record the reduction in the value of an asset due to usage or passage of time. The amount of depreciation should be recognized as an expense and to be transferred to statement of income. Straight line method of depreciation: The amount of depreciation calculated under this method remains during the useful life of the asset. This method is known as fixed installment method. Depreciation is calculated only one time and the same amount of depreciation is charged over the useful life of the asset. To determine: Depreciation associated with the machine using straight-line depreciation method.

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Depreciation: It is the amount of expense charged due to the use of fixed assets. The reason for charging depreciation is to record the reduction in the value of an asset due to usage or passage of time. The amount of depreciation should be recognized as an expense and to be transferred to statement of income.

Straight line method of depreciation: The amount of depreciation calculated under this method remains during the useful life of the asset. This method is known as fixed installment method. Depreciation is calculated only one time and the same amount of depreciation is charged over the useful life of the asset.

To determine:

Depreciation associated with the machine using straight-line depreciation method.

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