An asset was purchased for $58,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000.
a. Determine the amount of the annual depreciation for the first two years.
b. Determine the book value at the end of the 2nd year.
c. Determine the depreciation expense for each of the remaining years after revision.