On January 1, 2008, the Villareal Mexican Bakery ledger shows Equipment $40,000 and Accumulated Depreciation $9,000.The depreciation

Question:

On January 1, 2008, the Villareal Mexican Bakery ledger shows Equipment $40,000 and Accumulated Depreciation $9,000.The depreciation resulted from using the straight-line method with a useful life of ten years and of $4,000. On this date, the company concludes that the equipment has a remaining useful life of only five years with the same .
Compute the revised annual 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...