Machine cost expired


Machine Tool Company purchased a $600,000 welding machine to use in production of large machine tools and robots. The welding machine was expected to have a life of 10 years and a salvage value at time of disposition of $60,000. The company uses straight-line depreciation. During its first operating year, the machine produced 600 machines of which 480 was sold.What part of the $600,000 machine cost expired?

 

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Accounting Basics: Machine cost expired
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