Compute depreciation expense for the fourth year

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Reference no: EM13260230

Consider the following data for Kathleen's Tropical Resorts, Inc.

Cost of machine $ 1,000,000
Estimated useful life (years) 8 years
Salvage value $ 40,000
Estimated useful life (units) 1,800,000
Units produced during the first year 160,000

Assume Kathleen's computed depreciation expense of $140,000 per year. After three years, Kathleen's determined that the machine would last eight more years (for a total of 11 years). Compute depreciation expense for the fourth year.

 

Reference no: EM13260230

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