Plummer Industries purchased a machine for $39,900 and is depreciating it with t
ID: 2454194 • Letter: P
Question
Plummer Industries purchased a machine for $39,900 and is depreciating it with the straight line method over a life of 8 years, using a residual value of $2,300. At the beginning of the sixth year, an extraordinary repair was made costing $7,500, the estimated useful life was extended to 13 years, and no change was made to the estimated residual value. Calculate depreciation expense for year 6.
Plummer Industries purchased a machine for $39,900 and is depreciating it with the straight line method over a life of 8 years, using a residual value of $2,300. At the beginning of the sixth year, an extraordinary repair was made costing $7,500, the estimated useful life was extended to 13 years, and no change was made to the estimated residual value. Calculate depreciation expense for year 6.
Explanation / Answer
Plummer Industries purchased a machine for $39,900 and is depreciating it with t