Problem 10-3A

On January 1, 2017, Evers Company purchased the following two machines for use in its production process.

Machine A:		The cash price of this machine was $37,500. Related expenditures included: sales tax $2,000, shipping costs $150, insurance during shipping $110, installation and testing costs $120, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $4,500 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B:		The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,200 salvage value remaining at the end of that time period.

Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2017)? The highest amount in year 4 (2020)? The highest total amount over the 4-year period? Click if you would like to Show Work for this question: Open Show work SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR PROBLEM By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor