Machinery was purchased for $51,000 on January 1, 2009. Freight charges amounted to $2,100 and there was a cost of $6,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $9,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2010, if the straight-line method of depreciation is used? $10,020. $8,580. $17,160. $20,040.
$20,040: (51,000+2,100+6,000-9,000) / 5 = 10,020 per year 2009 - 10,020 2010 - 10,020 Total = $20,040
