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Banger Co. purchased delivery equipment for $56,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years
Banger Co. purchased delivery equipment for $56,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years and a $7,000 salvage value. Banger uses the straight-line method to compute the depreciation expense. At the beginning of year 4, Banger revised the useful life of the delivery equipment to be a total of seven years. The estimated salvage value was not changed. Compute the depreciation expense for each of the seven years. Years Year 1 Depreciation Expense Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
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