Elppa Company purchased a machine on January 2, 2021. The total cost of the purchase was $375,000. The machine has an estimated salvage value of $25,000 and an estimated useful life of 6 years. In June of 2022, the company spent $12,000 to replace the gasoline-powered engine with an electric engine; this changed the estimate of the machine's total useful life to 13 years. Depreciation for 2021 was recorded before the overhaul.

 

Show calculations for the annual straight-line depreciation amounts for this asset for 2021 through 2023.

 

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File B9 Home Insert Draw Page Layout X ✓ fx B A 1 Elppa Company 2 3 Cost 4 Salvage Value 5 Useful life 6 7 Overhaul cost 8 9 Depreciable amount 10 Initial life 11 SL depreciation 12 13 14 15 16 17 18 19 2021 2022 2023 375,000 25,000 6 12,000 C Formulas Data Review D E View F Automate G Help H I J K L M N O Comments P Share Q File B9 Home Insert Draw Page Layout X ✓ fx B A 1 Elppa Company 2 3 Cost 4 Salvage Value 5 Useful life 6 7 Overhaul cost 8 9 Depreciable amount 10 Initial life 11 SL depreciation 12 13 14 15 16 17 18 19 2021 2022 2023 375,000 25,000 6 12,000 C Formulas Data Review D E View F Automate G Help H I J K L M N O Comments P Share Q

Answer rating: 100% (QA)

To calculate the annual straightline depreciation amounts for the asset we need to determine the dep... View the full answer