Panama Company purchased a machine on March 15, 2018.

The related data is as follows:
Cost   3,000,000
Estimated useful life    10 years
Estimated residual life    150,000
The entity uses the straight-line method.
On Jan. 1, 2020, after a quality improvement review, the entity determined the following:
The new estimated useful life is 12 years
The new estimated residual value is 100,250
What is the depreciation of the machine in 2020?

Answer rating: 100% (QA)

To calculate the depreciation of the machine in 2020 we need to determine the annual depreciation ex... View the full answer