4.

Revision of Depreciation

Equipment with a cost of $394,800 has an estimated residual value of $42,300, has an estimated useful life of 15 years, and is depreciated by the straight-line method.

a. Determine the amount of the annual depreciation. $fill in the blank 1

b. Determine the book value at the end of the 11 full years of use. $fill in the blank 2

c. Assuming that at the start of the year 12 the remaining life is estimated to be 11 years and the residual value is estimated to be $39,500, determine the depreciation expense for each of the remaining 11 years. $fill in the blank 3