Compute the yearly depreciation expense

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Q1. A machine costing $66,095 with a 5-year life and $60,727 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation. Round your answer to the nearest whole dollar.

Q2. An asset was purchased for $132,000 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $8,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,600. Calculate the third-year depreciation expense using the revised amounts and straight-line method.

Reference no: EM132735542

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