Daily enterprises is purchasing a $ 10.5 million machine. it will cost $ 46 comma 000 to transport and install the machine. the machine has a depreciable life of five years and will have no salvage value. if daily uses straight-line depreciation, what are the depreciation expenses associated with this machine? the yearly depreciation expenses are $ nothing.

$2,109,200

Explanation:

The computation of the depreciation expense under the straight line method is shown below:

= (Original cost + installation cost - residual value) ÷ (useful life)

= ($10,500,000 + $46,000 - $0) ÷ (5 years)

= ($10,546,000) ÷ (5 years)  

= $2,109,200

In this method, the depreciation is same for all the remaining useful life

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