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. $