Straight line method depreciation for full and part year
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Cheetah Company purchased machinery on January 1, 2004, for $60,000. The machinery is estimated to have a salvage value of $6,000 after a useful life of 8 years.
(a) Compute 2004 depreciation expense using the straight-line method.
(b) Compute 2004 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2004.
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Solution Summary
The solution explains how to calculate straight line method depreciation for full and part year.
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Under straight line method the depreciation amount is calculated as
Depreciation = ...
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