Required for site prep and installation labor

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Reference no: EM13818509

An Industrial machine was purchased for $500,000 and and additional $50,000 was required for site prep and installation labor. The freight for the delivery was $10,000. The company received a trade in allowance of $75,000 on an old machine which had a book value of $60,000. It is expected after 5 years that the machine will have a salvage value of $20,000. What Straight line depreciation amount should the company include in their accounting reports next year if this is a 5 year asset?

Reference no: EM13818509

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