Apex Fitness Club uses straight-line depreciation for a machine costing $21,700, with an estimated four year life and a $2,850 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,400 salvage value. Required: 1. Compute the machines book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates.

Revised Depreciation (years 3-5)

Book Value at point of revision : 12 275

Revised salvage value : ?

Remaining depreciable cost : ?

Years of life remaining : ?

Revised Annual depreciation (years 3-5) : ?