McKinley Industries purchased a piece of equipment for their…
McKinley Industries purchased a piece of equipment for their manufacturing facilities and paid with a 3-year, zero-interest bearing $150,000 notes payable. Assuming a 5-year useful life and no salvage value, how much straight-line depreciation expense would McKinley record for this asset each year? McKinley typically borrows at a rate of 5%. The present value of one for 3-periods at 5% is: .86384 The present value of one for 5-periods at 5% is: .78353 Round all calculations to whole dollars.