Wildhorse Co

Accounting Aug 07, 2020

Wildhorse Co. bought a machine on January 1, 2017. The machine cost $136000 and had an expected salvage value of $20000. The life of the machine was estimated to be 4 years. The depreciation expense using the straight-line method of depreciation is

$38667.

$34000.

$29000.

none of these answer choices are correct.

Expert Solution

Solution:

Depreciation expense using the straight-line method of depreciation is = (Cost - Salvage value) / useful life

= ($136,000 - $20,000) / 4 = $29,000

Hence 3rd option is correct.

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