Jillian Company purchased a set of fixtures on January 1, 2012. The cost was $12,000 and the set had a
residual value of $2,000. The fixtures were given a useful life of 8 years. After the end of three years, it was determined that the fixtures would be obsolete in 2 more years. Assume that the estimated residual value is still $2,000. What will be the depreciation under the straight-line method to the nearest dollar for the fourth year? What is the journal entry in the fourth year to record depreciation?

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The Answer of Jillian Company purchased a set of fixtures on January 1, 2012. The cost was $12,000 and the set had a
residual value of $2,000. The fixtures were given a useful life of 8 years. After the end of three years, it was determined that the fixtures would be obsolete in 2 more years. Assume that the estimated residual value is still $2,000. What will be the depreciation under the straight-line method to the nearest dollar for the fourth year? What is the journal entry in the fourth year to record depreciation?

Jillian Company Purchased a Set of Fixtures on January 1