Jantz Corporation purchased a machine on July 1, 2001, for $250,000. The machine was estimated to have a useful life of 10 years with an estimated salvage value of $14,000. During 2004, it became apparent that the machine would become uneconomical after December 31, 2008, and that the machine would have no scrap value. Accumulated depreciation on this machine as of December 31, 2003, was $59,000. What should be the charge for depreciation in 2004 under generally accepted accounting principles?© BrainMass Inc. brainmass.com June 3, 2020, 10:02 pm ad1c9bdddf
Under GAAP the book value should be depreciation over the remaining useful ...
The solution explains how to calculate the depreciation amount.