Question
An asset was purchased for $62,000 and was originally estimated to have a useful life of 10 years with a residual value of $5,000. After
An asset was purchased for $62,000 and was originally estimated to have a useful life of 10 years with a residual value of $5,000. After 2 years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000.
a. Determine the amount of the annual depreciation for the first 2 years. $fill in the blank 1
b. Determine the book value at the end of Year 2. $fill in the blank 2
c. Determine the depreciation expense for each of the remaining years after revision. $fill in the blank 3
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