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A company used straight-line depreciation for an item of equipment that cost $14,250, had a salvage value of $3,000, and had a five-year useful life.
A company used straight-line depreciation for an item of equipment that cost $14,250, had a salvage value of $3,000, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,500 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:
$1,867. $2,125. $1,250. $2,000. $2,550.
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