Finn Corporation purchased a machine on July 1, 2008, for $225,000. The machine was estimated to have

Question:

Finn Corporation purchased a machine on July 1, 2008, for $225,000. The machine was estimated to have a useful life of 12 years with an estimated salvage value of $15,000. During 2011, it became apparent that the machine would become uneconomical after December 31, 2015, and that the machine would have no scrap value. Finn uses the straight-line method of depreciation for all machinery. What should be the charge for depreciation in 2011 using the new estimates for useful life and salvage value.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...