Question: On September 2 9 , 2 0 2 0 , Markham Co . purchased machinery for $ 4 7 5 , 0 0 0 .

On September 29,2020, Markham Co. purchased machinery for $475,000. Salvage value was estimated to be $25,000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Markham should record depreciation expense for 2021 on this machinery of
Selected Answer:
Incorrect
$87,500
Correct Answer:
Correct
$96,875

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