Wizard co. purchased two machines for $250,000 each on january 2, 2005. the machines were put into use immediately. machine a has a useful life of 5 years and can only be used in one research project. machine b will be used for 2 years on a research and development project and then used by the production division for an additional 8 years. wizard uses the straight-line method of depreciation. what amount should wizard include in 2005 research and development expense?

75,000

Explanation:

The straight-linedepreciation is calculate by dividing the acquisition value over the useful life

Machine A useful life is for 5 years

250,000 / 5 years = 50,000 per year

Machine B useful life is:

2 years in development project and then 8 years in a production division

total useful life for 10 years

250,000/ 10 years = 25,000

Total development expense:

machine A depreciation 50,000  + machine B depreciation 25,000 = 75,000

development expense 75,000

      acc depreciation machine A   50,000

      acc depreciation machine B   25,000

answer; ///usually the ( irs ) selects returns that are the most likely have errors,based on complex criteria;

answersecondary succession;