Sheridan Company purchased a new machine on October 1, 2022, at a cost of $66,840. The company estimated that the machine has a salvage value of $6,720. The machine is expected to be used for 70,100 working hours during its 6-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. (Round answers to 2 decimal places, e. g. 5,275.25.) 2022 2023 The depreciation expense under the straight-line method $Enter a dollar amount for year 2022 $Enter a dollar amount for year 2023

The depreciation expense under the straight-line method $10020

Depreciation Expense for 2022=$ 2505

Depreciation Expense  for 2023= $ 10020

Explanation:

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Expense Straight Line Method =

                                   $66,840-$6,720/6= 60120/6= $ 10020

The machinery was purchased on 1st Oct so the depreciation Expense for 2022 would be ($ 10020/12 )*3= $ 2505

Depreciation Expense for 2022=$ 2505

Depreciation Expense Straight Line Method for 2023

                                     =Cost - Salvage Value/ Useful Life

                                  = $66,840-$6,720/6= 60120/6= $ 10020

The depreciation expense under the straight line method remains the same for each year but as the machinery was purchased  on October 1, 2022, the depreciation expense will be for 3 month in the year 2022 and for the 12 months in the year 2023.

the answer is a. $209,000