Holt Company purchased a computer for $8,000 on January 1, 2011 Straight line depreciation is used, based on a 5 year life and a $1,000 salvage value In 2013, the estimates are revised Holt now feels the computer will be used until December 31, 2014, when it can be sold for $500 Compute the 2013 de...

Holt Company purchased a computer for $8,000 on January 1, 2011. Straight-line depreciation is used, based on

Question:

Holt Company purchased a computer for $8,000 on January 1, 2011. Straight-line depreciation is used, based on a 5-year life and a $1,000 . In 2013, the estimates are revised. Holt now feels the computer will be used until December 31, 2014, when it can be sold for $500. Compute the 2013 depreciation.

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...