Question
Centus, Inc. paid $7,182,900 to purchase equipment at the beginning of 2014. The estimated useful life at the time of the purchase was 15
Centus, Inc. paid $7,182,900 to purchase equipment at the beginning of 2014. The estimated useful life at the time of the purchase was 15 years with no salvage value. At the beginning of 2023, Centus, Inc. paid $1,652,100 to overhaul the equipment, extending the asset's life by 4 years. Based on these estimates, what should Centus, Inc. record as depreciation expense on the machine in 2023, assuming the company uses straight line depreciation?
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
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