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sheridan company purchased a new machine on october 1, 2025, at a cost of $66,840. the company estimated that the machine has a salvage value of $6,360. the machine is expected to be used for 70,100 working hours during its 6-year life. compute the depreciation expense under the straight-line method for 2025 and 2026, assuming a december 31 year-end.

Respuesta :

The depreciation expense in 2025 is $2520.

The depreciation expense in 2026 is $11,592.

What is the depreciation expense in 2025 and 2026?

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Depreciation in 2025 = (number of months the machine was used / number of months in a year) x [(Cost of asset - Salvage value) / useful life]

Depreciation in 2025 = (3/12) x [(66,840 - 6,360) /6] = $2520

Depreciation in 2026 = (book value - salvage value) / useful life

Book value  = cost of the asset - depreciation in 2025

$66,840 - $2,520 = $64,320

Depreciation in 2026 = ($64,320 - 6360) / 5 = $11,592

To learn more about straight line depreciation, please check: https://brainly.com/question/6982430

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