Question

**A machine that costs $20,000 and has a 10-year life and
a $2000 salvage value. If straight-line depreciation is used, what
is the accumulated depreciation for the machine at the end of the
6th year?**

Answer #1

Ans: T**he accumulated depreciation for the machine at the
end of the 6th year is $10,800**

**Explanation:**

Cost of the asset ( P ) = $20,000

Salvage value ( F ) = $2,000

Number of year ( n ) = 10

Annual depreciation amount = P - F / n

= ( $20,000 - $2,000) / 10

= $18,000 /10

= $ 1800

The accumulated depreciation for the machine at the end of the 6th year = $1800 * 6 = $10,800

End of the Year | Depreciation Amount | Book Value = Previous year book value - Current year depreciation amount |

0 | -- | $20,000 |

1 | 1800 | 18200 |

2 | 1800 | 16400 |

3 | 1800 | 14600 |

4 | 1800 | 12800 |

5 | 1800 | 11000 |

6 | 1800 | 9200 |

7 | 1800 | 7400 |

8 | 1800 | 5600 |

9 | 1800 | 3800 |

10 | 1800 | 2000 |

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