On January 1, 2019, the Morgantown Company ledger shows Equipment $32,000 and Accumulated Depreciation-Equipment $9,000. The depreciation

Question:

On January 1, 2019, the Morgantown Company ledger shows Equipment $32,000 and Accumulated Depreciation-Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and a of $2,000. On this date, the company concludes that the equipment has a remaining useful life of only 4 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...