Popeye Company purchased a machine for $360,000 on January 1, 2020. Popeye depreciates machines of this type by the straight-line method over a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Popeye discovered the error in 2021. What amount should Popeye record as depreciation expense for 2021

$72,000

Explanation:

Annual depreciation = $360,000 ÷ 5 = $72,000

Based on the recognition principle in accounting which states that expenses should be recognized when they are incurred and incomes recognized when they are earned, Popeye should record $72,000 as depreciation expense for 2021.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.