Wickland company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $108,000. the machine's useful life is estimated to be 4 years, or 140,000 units of product, with a $2,000 salvage value. during its second year, the machine produces 28,000 units of product. determine the machines' second year depreciation under the straight-line method.

Respuesta :

The machines' second-year depreciation under the straight-line method is $26,500.
To determine the depreciation amount using the straight-line method, we have to consider the machine's useful life only as the depreciation basis. The formula used for the calculation is: (Asset value-salvage value)/asset's useful life.