On January 1,2012,Stassi Corporation purchased equipment for $25,000.A discount of 2% was granted on the equipment; the shipping terms were FOB Shipping Point,and the shipping cost was $1,500; installation and testing amounted to $1,000.The equipment had an estimated useful life of 4 years and salvage value of $4,000.At the beginning of 2014,Stassi revised the expected life of the asset to six years and the salvage value to $5,000.
Required:
Compute the depreciation expense using straight-line method for each of the six years.

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The Answer of On January 1,2012,Stassi Corporation purchased equipment for $25,000.A discount of 2% was granted on the equipment; the shipping terms were FOB Shipping Point,and the shipping cost was $1,500; installation and testing amounted to $1,000.The equipment had an estimated useful life of 4 years and salvage value of $4,000.At the beginning of 2014,Stassi revised the expected life of the asset to six years and the salvage value to $5,000.
Required:
Compute the depreciation expense using straight-line method for each of the six years.

On January 1,2012,Stassi Corporation Purchased Equipment for $25,000