Justin,Inc.purchased equipment for $100,000.The equipment had an estimated useful life of eight years and an estimated residual value of $12,000.After five years of use,the estimated residual value is changed to $18,000.Assuming straight-line depreciation,depreciation expense in year 6 would be

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Depreciation expense = (Cost - Residual value) / Useful life= (100,000 - 18,000) / 8= 102,000 / 8= 12,750Depreciation expense in year 6 = 12,750 - 2,500 = $9,000