Mustin, Inc. purchased equipment for $50,000. The equipment had an estimated useful life of eight years and an estimated residual value of $6,000. After five years of use, the estimated residual value is changed to $9,000. Assuming straight-line depreciation, depreciation expense in year 6 would be

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The original annual depreciation is ($50,000 - $6,000) / 8 = $5,500. After 5 years, accumulated depreciation is $27,500. The book value is $50,000 - $27,500 = $22,500. With a new residual value of $9,000 and 3 years remaining, the new annual depreciation is ($22,500 - $9,000) / 3 = $4,500.