Apex Fitness Club uses straight line depreciation for a machine costing $ 23,860, with an estimated four year life and a $ 2,400 salvage value At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $ ...

1 Original cost of machine 23860 Less two years accumulated deprec ...

Apex Fitness Club uses straight- line depreciation for a machine costing $ 23,860, with an estimated four-year

Question:

Apex Fitness Club uses straight- line depreciation for a machine costing $ 23,860, with an estimated four-year life and a $ 2,400 . At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $ 2,000 .
Compute
(1) The machine’s book value at the end of its second year
(2) The amount of depreciation for each of the final three years given the revised estimates.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...