On September 19 2017 Bramble Corp purchased machinery for 47

On September 19, 2017, Bramble Corp. purchased machinery for $473000. Salvage value was estimated to be $27000. The machinery will be depreciated over eight years using the sum-of-the-years\'-digits method. If depreciation is computed on the basis of the nearest full month, Bramble should record depreciation expense for 2018 on this machinery of

Solution

Depreciable value = cost - salvage value = 473000-27000 = 446000

depreciation expense for 2018 = (446000*8/36*9/12)+(446000*7/36*3/12) = 96013.89 = 96014