Equipment was acquired on January 1, 2019, at a cost of $ 90,000. The equipment was originally estimated to have a residual value of $ 5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2020, using the straight-line method. On January 1, 2021 the estimated residual value was revised to $ 6,000 and the useful life was revised to a total of 8 years.
Instructions
Determine the depreciation expense for 2021.

Question

Quizplus · Accepted Answer

The Answer of Equipment was acquired on January 1, 2019, at a cost of $ 90,000. The equipment was originally estimated to have a residual value of $ 5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2020, using the straight-line method. On January 1, 2021 the estimated residual value was revised to $ 6,000 and the useful life was revised to a total of 8 years.
Instructions
Determine the depreciation expense for 2021.

Equipment Was Acquired on January 1, 2019, at a Cost