Hawk Company purchased an asset on January 1, 2014, for $10,000. The asset was expected to have a ten-year life and a $1,000 salvage value. The company uses the straight-line method of depreciation. On January 1, 2016, the company made a major repair to the asset of $5,000, extending its life. The asset is expected to last ten years from January 1, 2016. Calculate the amount of depreciation for 2016.

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The Answer of Hawk Company purchased an asset on January 1, 2014, for $10,000. The asset was expected to have a ten-year life and a $1,000 salvage value. The company uses the straight-line method of depreciation. On January 1, 2016, the company made a major repair to the asset of $5,000, extending its life. The asset is expected to last ten years from January 1, 2016. Calculate the amount of depreciation for 2016.

Hawk Company Purchased an Asset on January 1, 2014, for $10,000