Glow Co. purchased machinery on January 1, 2015, for $880,000. The straight-line method is used and useful life is estimated to be 10 years, with a $80,000 salvage value. At the beginning of 2021, Glow spent $192,000 to overhaul the machinery. After the overhaul, Glow estimated that the useful life would be extended 4 years (14 years total), and the salvage value would be $40,000. The depreciation expense for 2021 should be:.

depreciation expense on machinery $  56,500

Explanation:

880,000 purchased on 2015 with 10 years useful life and 80,000 salvage value: 80,000 depreciation per year:

at the beginning of 2021 book value:

880,000 - 80,000 x 6 years =         300,000 book value

overhaul capitalized expenditures  192,000  

net book value after overhead       492,000

we have 14 years fro mwhich 6 have pass therefore 8 years of useful life

and 40,000 salvage value

depreciation for the year:

(492,000 - 40,000 )/ 8 =  56,500 dollars

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education

answerindustrial revolution;