Question
An asset was purchased for $70,000 and originally estimated to have a useful life of 10 years with a residual value of $3,300. After two
An asset was purchased for $70,000 and originally estimated to have a useful life of 10 years with a residual value of $3,300. After two 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 $1,320.
a) Determine the amount of the annual depreciation for the first two 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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