Eckland Manufacturing Co.purchased equipment on January 1,2014,at a cost of $90,000.Straight-line depreciation for 2014 and 2015 was based on an estimated eight-year life and $2,000 estimated residual value.In 2016,Eckland revised its estimate and now believes the equipment will have a total service life of only six years,while the residual value remains the same.
Required:
Compute depreciation for 2016 and 2017.

Question

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The Answer of Eckland Manufacturing Co.purchased equipment on January 1,2014,at a cost of $90,000.Straight-line depreciation for 2014 and 2015 was based on an estimated eight-year life and $2,000 estimated residual value.In 2016,Eckland revised its estimate and now believes the equipment will have a total service life of only six years,while the residual value remains the same.
Required:
Compute depreciation for 2016 and 2017.