Radiata Ltd purchased equipment on 1 January, 2016, at a cost of $60,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through 31 December, 2019, using the straight-line method. On 1 January, 2020, the estimated residual value was revised to $6,000 and the useful life was revised to a total of 8 years.
Determine Radiata Ltd's Depreciation Expense for 2020.

Question

Quizplus · Accepted Answer

The Answer of Radiata Ltd purchased equipment on 1 January, 2016, at a cost of $60,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through 31 December, 2019, using the straight-line method. On 1 January, 2020, the estimated residual value was revised to $6,000 and the useful life was revised to a total of 8 years.
Determine Radiata Ltd's Depreciation Expense for 2020.

Radiata Ltd Purchased Equipment on 1 January, 2016, at a Cost