Goff Corporation purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the

Question:

Goff Corporation purchased a machine on January 1, 2010, for $500,000. At the date of acquisition, the machine had an estimated useful life of 20 years with no salvage value. The machine is being depreciated on a straight-line basis. On January 1, 2015, as a result of Goff's experience with the machine, it was decided that the machine had an estimated useful life of 15 years from the date of acquisition. What is the amount of depreciation expense on this machine in 2015 using a new annual depreciation charge for the remaining 10 years?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...