Laurens Company purchased equipment that cost $10,000 on January 1,2012.The asset had an expected useful life of five years and an estimated salvage value of $2,000.Laurens uses the straight-line method for the recognition of depreciation expense.At the beginning of the fourth year of usage,the company revised its estimated salvage value to $1,000.Based on this information,the amount of depreciation expense to be recognized at the end of 2015 is:

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The Answer of Laurens Company purchased equipment that cost $10,000 on January 1,2012.The asset had an expected useful life of five years and an estimated salvage value of $2,000.Laurens uses the straight-line method for the recognition of depreciation expense.At the beginning of the fourth year of usage,the company revised its estimated salvage value to $1,000.Based on this information,the amount of depreciation expense to be recognized at the end of 2015 is:

Laurens Company Purchased Equipment That Cost $10,000 on January 1,2012