Equipment was purchased on January 5, Year 1, at a cost of $90,000. The equipment had an estimated useful life of eight years and an estimated residual value of $8,000.After using the equipment for three 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 Year 4 and the 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 eight years and an estimated residual value of $8,000.​After using the equipment for three 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 Year 4 and the following years.

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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 eight years and an estimated residual value of $8,000.​After using the equipment for three 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 Year 4 and the following years.

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