Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000 The company estimated that the machine has a salvage value of $8,000 The machine is expected to be used for 70,000 working hours during its 8 year life Instructions Compute the depreciation expense under the straight li...

Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company

Question:

Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a of $8,000. The machine is expected to be used for 70,000 working hours during its 8-year life.
Instructions
Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...