Compute depreciation expense for the fourth year

Reference no: EM13260230

Consider the following data for Kathleen's Tropical Resorts, Inc.

Cost of machine	$ 1,000,000
Estimated useful life (years)	8 years
Salvage value	$ 40,000
Estimated useful life (units)	1,800,000
Units produced during the first year	160,000

Assume Kathleen's computed depreciation expense of $140,000 per year. After three years, Kathleen's determined that the machine would last eight more years (for a total of 11 years). Compute depreciation expense for the fourth year.

Reference no: EM13260230

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