Finn Corporation purchased a machine on July 1, 2010, for $225,000 The machine was estimated to have a useful life of 12 years with an estimated salvage value of $15,000 During 2013, it became apparent that the machine would become uneconomical after December 31, 2017, and that the machine would ha...

Depreciation for the first 2 12 years ...

Finn Corporation purchased a machine on July 1, 2010, for $225,000. The machine was estimated to have

Question:

Finn purchased a machine on July 1, 2010, for $225,000. The machine was estimated to have a useful life of 12 years with an estimated of $15,000. During 2013, it became apparent that the machine would become uneconomical after December 31, 2017, 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 2013 using the new estimates for useful life and ?
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...