Equipment was purchased on January 5, year 1, at a cost of $90,000. The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000.

After using the equipment for 3 years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.

Determine the straight-line depreciation expense for the Year 4 and following years.

Question

Equipment was purchased on January 5, year 1, at a cost of $90,000. The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000.
 
After using the equipment for 3 years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.
 
Determine the straight-line depreciation expense for the Year 4 and following years.

Quizplus · Accepted Answer

The Answer of Equipment was purchased on January 5, year 1, at a cost of $90,000. The equipment had an estimated useful life of 8 years and an estimated residual value of $8,000.
 
After using the equipment for 3 years, the useful life was revised to a total of 10 years and the residual value was reduced to $2,004.
 
Determine the straight-line depreciation expense for the Year 4 and following years.

Equipment Was Purchased on January 5, Year 1, at a Cost