Answer to Question #273935 in Civil and Environmental Engineering for Alan Enrico V Tuib

Question

Lee Company of Westbrook, Connecticut, manufactures pressure relief inserts for thermal relief and

low-flow hydraulic pressure relief applications where zero leakage is required. A machine purchased 3

years ago has been book-depreciated by the straight-line method using a 5-year useful life. If the book

value at the end of year 3 is $30,000 and the company assumed that the machine would be worthless

at the end of its 5-year useful life, (a) what is the book depreciation charge each year and (b) what was

the first cost of the machine?

Answer 1

Both parts with given table is given below: