Depreciation expense for the most recent fiscal year on equipment purchased a few years ago is $10,000.The balance sheet at the end of the same year disclosed the following: The asset is not expected to have a salvage value and the firm depreciates the asset on the straight-line basis.In March of the next year (the year of change),the firm decided to reduce the original total useful life 20% and that a salvage value of $30,000 is a reasonable estimate.What is depreciation in the year of the change?

Question

Depreciation expense for the most recent fiscal year on equipment purchased a few years ago is $10,000.The balance sheet at the end of the same year disclosed the following:  The asset is not expected to have a salvage value and the firm depreciates the asset on the straight-line basis.In March of the next year (the year of change),the firm decided to reduce the original total useful life 20% and that a salvage value of $30,000 is a reasonable estimate.What is depreciation in the year of the change?

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The Answer of Depreciation expense for the most recent fiscal year on equipment purchased a few years ago is $10,000.The balance sheet at the end of the same year disclosed the following:  The asset is not expected to have a salvage value and the firm depreciates the asset on the straight-line basis.In March of the next year (the year of change),the firm decided to reduce the original total useful life 20% and that a salvage value of $30,000 is a reasonable estimate.What is depreciation in the year of the change?

Depreciation Expense for the Most Recent Fiscal Year on Equipment