Straight Line Depreciation
Example: For $5 million, Company XYZ purchased a machine that will have an estimated useful life of five years. The company also estimates that in five years, the company will be able to sell it for $500,000 for scrap parts.
Depreciation Expense = ($5,000,000 - $500,000)/5
Depreciation Expense = $900,000
Example: For $5 million, Company XYZ purchased a machine that will have an estimated useful life of five years. The company also estimates that in five years, the company will be able to sell it for $500,000 for scrap parts.
Depreciation Expense = ($5,000,000 - $500,000)/5
Depreciation Expense = $900,000
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