Archer Company purchased equipment in January of 2000 for $90,000.The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no residual value.At the beginning of 2010, when the equipment had been in use for 10 years, the company paid $15,000 to overhaul the equipment.As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years.What should be the depreciation expense recorded for this equipment in 2010?

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The Answer of Archer Company purchased equipment in January of 2000 for $90,000.The equipment was being depreciated on the straight-line method over an estimated useful life of 20 years, with no residual value.At the beginning of 2010, when the equipment had been in use for 10 years, the company paid $15,000 to overhaul the equipment.As a result of this improvement, the company estimated that the useful life of the equipment would be extended an additional 5 years.What should be the depreciation expense recorded for this equipment in 2010?

Archer Company Purchased Equipment in January of 2000 for $90,000