Glidewell Company purchased a car for a salesman for $23,500 at the beginning of 2012.The car had an estimated life of 5 years,and an estimated residual value of $3,500.Glidewell used the straight-line depreciation method.At the beginning of 2013,Glidewell incurred $2,500 to replace the car's transmission.This resulted in a 2-year extension of the car's useful life,but no change in the residual value.

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The Answer of Glidewell Company purchased a car for a salesman for $23,500 at the beginning of 2012.The car had an estimated life of 5 years,and an estimated residual value of $3,500.Glidewell used the straight-line depreciation method.At the beginning of 2013,Glidewell incurred $2,500 to replace the car's transmission.This resulted in a 2-year extension of the car's useful life,but no change in the residual value.

Glidewell Company Purchased a Car for a Salesman for $23,500