Lexis Company purchased equipment on January 1,2012 for $35,500.The estimated useful life of the equipment was 7 years and the estimated residual value was $4,000.After using the straight-line method of depreciation for 3 years,the estimated useful life was revised to 9 years on January 1,2015.How much is depreciation expense for 2015?

Question

Quizplus · Accepted Answer

B) Calculations:
[($35,500 - $4,000)/7] × 3 = $13,500
($31,500 - $13,500)/6 = $3,000

Lexis Company Purchased Equipment on January 1,2012 for $35,500