Question

Cullumber Company purchased a new machine on October 1, 2022, at a cost of $66,000. The company estimated that the machine has a salvage value of $7,140. The machine is expected to be used for 72,000 working hours during its 6-year life.

Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.)

Exercise 9-05 Cullumber Company purchased a new machine on October 1, 2022, at a cost of $66,000. The company estimated that the machine has a salvage value of $7,140. The machine is expected to be used for 72,000 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e.g. 5,275.25.) 2022 2023 The depreciation expense under the straight-line method $

Answer 1

Answer
Annual depreciation expense=(Cost-Salvage value)/Useful Life
(66000-7140)/6=$9,810
Hence depreciation expense for :
2022=9810*(3/12)=$2453
2023=$9,810
	2022	2023
Depreciation expense under straight line method	$     2,453	$     9,810
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