Effect of depreciation expense on financial statements
Three different companies each purchased a machine on January 1, 2005, for $54,000. each machine was expected to last five years or 200,000 hours. Salvage value was estimated to be $4,000. All three machines were operated for 50,000 hours in 2005, 55,000 hours in 2006, 40,000 hours in 2007, 44,000 hours in 2008, and 31,000 ho