Luke Corporation began operations January 1, 2008, purchasing equipment for $200,000. The equipment is estimated to have a five year useful life with no residual value. In 2010, Luke changed its method of depreciating equipment from double-declining balance to straight-line. If depreciation expense had been computed under each of these two methods for 2008-2009, the results would have been:
Required: Compute the depreciation expense that Luke would report for 2010.

Question

Quizplus · Accepted Answer

The Answer of Luke Corporation began operations January 1, 2008, purchasing equipment for $200,000. The equipment is estimated to have a five year useful life with no residual value. In 2010, Luke changed its method of depreciating equipment from double-declining balance to straight-line. If depreciation expense had been computed under each of these two methods for 2008-2009, the results would have been:
Required: Compute the depreciation expense that Luke would report for 2010.

Luke Corporation Began Operations January 1, 2008, Purchasing Equipment for $200,000