Machinery
Equipment used in production.
Formula
Depreciation (Straight-Line) = (Cost − Residual Value) ÷ Useful Life
Real World
Tesla's Gigafactory in Nevada uses thousands of automated robotic arms to assemble battery packs, enabling output at a scale and speed impossible with manual labour.
Exam Focus
When discussing machinery investment, reference capital vs revenue expenditure distinction — examiners expect correct accounting treatment.
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