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Mitch Co. bought a new machine on 8/1/25 for $10,000. The machine has a salvage value of $1,000. The machine’s useful life is estimated at 5 years and it is estimated to produce a total of 500,000 units over its lifetime. Year end for Mitch Co. is 12/31.
Question 1 (3 points)
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Assume Mitch Co. uses the straight-line method to calculate depreciation. How much depreciation expense would Mitch recognize in 2025?

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