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Bramble Corporation bought a machine on October 1 , 2 0 2 3 , for $ 7 1 , 0 0 0 , f .
Bramble Corporation bought a machine on October for $ fob the place of manufacture. Freight to the point where it was set up was $ and $ was expended to install it The machines useful life was estimated at years, with a salvage value of $ On October an essential part of the machine was replaced, at a cost of $ with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation could not be determined with any accuracy.
On October the company bought a new machine of greater capacity for $ delivered, trading in the old machine which had a fair market value and tradein allowance of $ To prepare the old machine for removal from the plant cost $ and expenditures to install the new one were $ It was estimated that the new machine has a useful life of years, with a salvage value of $ at the end of that time. The exchange had commercial substance.
Assuming that depreciation is to be computed on the straightline basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning October Round intermediate calculations and final answers to decimal places, eg
Depreciation for the year beginning October
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