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Sheffield Corporation bought a machine on June 1. 2018, for $36,200, fo.b. the place of manufacture Freight to the point where it was set up
Sheffield Corporation bought a machine on June 1. 2018, for $36,200, fo.b. the place of manufacture Freight to the point where it was set up was $240, and $560 was expended to installit. The machine's useful life was estimated at 10 years, with a salvage value of $2,900. On June 1, 2019, an essential part of the machine is replaced, at a cost of $2250, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy, On June 1, 2022, the company buys a new machine of greater capacity for $40.950, delivered trading in the old machine which has a fair value and trade-in allowance of 523 400. To prepare the old machine for removal from the plant cost $88, and expenditures to install the new one were $1.750. It is estimated that the new machine has a useful life of 10 years, with a salvage value of 54.680 at the end of that time. (The exchange has commercial substance.) Assuming that depreciation is to be computed on the straight-rine basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June 1, 2022 (Round answer to decimal places, eg: 45.892) Depreciation for the year beginning June 1. 2022 S
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