Question
i cant figure out how to find out what the straight line depercation would be Factor Company is planning to add a new product to
i cant figure out how to find out what the straight line depercation would be
Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $507,000 cost with an expected four-year life and a $23,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (PV of $1, FV of $1, PVA of $1, and FVA of $1
Expected annual sales of new product $ 1,840,000 Expected annual costs of new product Direct materials 480,000 Direct labor 677,000 Overhead (excluding straight-line depreciation on new machine) 337,000 Selling and administrative expenses 142,000 Income taxes 34 %
Required:
1. Compute straight-line depreciation for each year of this new machine's life.
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