Equipment was acquired on January 1 2014 at a cost of $90000. The equipment was originally estimated to have a salvage value of $5000 and an estimated life of 10 years. Depreciation has been recorded through December 31 2017 using the straight-line method. On January 1 2018 the estimated salvage value was revised to $6000 and the useful life was revised to a total of 8 years.
Instructions
Determine the depreciation expense for 2018.

Question

Quizplus · Accepted Answer

The Answer of Equipment was acquired on January 1 2014 at a cost of $90000. The equipment was originally estimated to have a salvage value of $5000 and an estimated life of 10 years. Depreciation has been recorded through December 31 2017 using the straight-line method. On January 1 2018 the estimated salvage value was revised to $6000 and the useful life was revised to a total of 8 years.
Instructions
Determine the depreciation expense for 2018.

Equipment Was Acquired on January 1 2014 at a Cost