Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. gamma corporation purchased a machine on january 1

Gamma Corporation purchased a machine on January 1, 2011 for $750,000 and put it in...

80.2K

Verified Solution

Question

Accounting

image
Gamma Corporation purchased a machine on January 1, 2011 for $750,000 and put it in use immediately. Gamma estimated the useful life in 10 years with a salvage value of $50,000. Gamma uses the straight-line method to depreciate this class of equipment. On January 1,2014, it became apparent that the machine would become uneconomical after December 31,2018, and that the machine would have no salvage value. That is, Gamma concluded that would be able to use the machine only until 12/31/2018, and the new salvage value is zero. What amount should be reported for Depreciation Expense as of December 31, 2014 ? $108,000 $75,000 $70,000 - 5135,000 $90,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students