At the beginning of the year, Tom Company purchase a machine that makes molds for $750,000. The company expects the machine to had a useful life of 7 years or 75,000 hours. At the end of the expected life the machine will have a residual value of $50,000. The machine was actually used 6,000 hours in the whole year. What is the amount of depreciation charged for the whole year using the straight-line method?

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Cost of machine 750000 Residual value 50... View the full answer