Repairing and Improving Property, Plant, and Equipment
Response to the following problem:
The company has a molding machine with a historical cost of $150,000 and accumulated depreciation of $110,000. On January 1, the company performed a major motor overhaul costing $24,000. The company expects the machine will last seven more years and have a salvage value of $8,000.
Compute depreciation expense for the current year using the straight-line method.