On June 1, Harding Co. purchased a machine for $14,000 and estimates it will use the machine for five-years with a $2,000 salvag

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On June 1, Harding Co. purchased a machine for $14,000 and estimates it will use the machine for five-years with a $2,000 salvag

e value. Using the straight-line depreciation method, compute the machine's first year (partial) depreciation expense for June 1st through December 31st.

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Scilla [3.8K] · Answer 1 · 2026-04-07T09:35:15+03:00

The machine incurred a partial depreciation expense of $1,400 during its first year. Harding Co. follows the straight-line method for depreciation, calculating the annual depreciation using the formula: Annual Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life = ($14,000 - $2,000)/5 = $2,400. The monthly depreciation amounts to $2,400/12 = $200. In its first year, from June 1st to December 31st, the machine was utilized for 7 months. Therefore, the total depreciation expense is calculated as: Depreciation expense = Monthly depreciation x 7 = $200 x 7 = $1,400.