Delilah Manufacturing Company,a Calendar Year Reporting Company,purchased a Machine for $80,000
Essay
Delilah Manufacturing Company,a calendar year reporting company,purchased a machine for $80,000 on January 1,2013.At the date of purchase,Delilah incurred the following additional costs:
The estimated salvage value of the machine was $5,000,and Delilah estimated the machine would have a useful life of 15 years,with depreciation being computed using the straight-line method.In January 2015,accessories costing $5,200 were added to the machine in order to reduce operating costs and improve the machine's output.These accessories neither prolonged the machine's life nor provided any additional salvage value.
Required:
What should Delilah record as depreciation expense for 2015?
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