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At the beginning of 2015, Mazzaro Company acquired equipment costing $159,000. It was estimated that this equipment would have a useful life of 6 years
At the beginning of 2015, Mazzaro Company acquired equipment costing $159,000. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $15,900 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year During 2017 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2020 the estimated salvage value was reduced to $5,000. Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table Depreciation Accumulated Expense Year Depreciation $23,850 $23,850 2015 2016 T47700 723,850 69960 22260 2017 x 22260 2018 92220 2019 22260 114480 19760 2020 134240 2021 19760 154000
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