Change in Depreciation Estimate A company purchased an asset on January 1, 2008, for $10,000 The asset was expected to have a ten year life and a $1,000 salvage value The company uses the straight line method of depreciation On January 1, 2010, the company determines that the asset will last only f...

Depreciation for 2008 and 2009 10000 100010 years ...

Change in Depreciation Estimate A company purchased an asset on January 1, 2008, for $10,000. The asset

Question:

Change in Depreciation Estimate A company purchased an asset on January 1, 2008, for $10,000. The asset was expected to have a ten-year life and a $1,000 . The company uses the straight-line method of depreciation. On January 1, 2010, the company determines that the asset will last only five more years.
Calculate the amount of depreciation for 2010.

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...