Question
Change in Estimated Useful Life Goff Corporation purchased a machine on January 1, 2008, for $250,000. At the date of acquisition, the machine had an
Change in Estimated Useful Life
Goff Corporation purchased a machine on January 1, 2008, for $250,000. At the date of acquisition, the machine had an estimated useful life of 20 years with no salvage value. The machine is being depreciated on a straight-line basis. On January 1, 2013, as a result of Goff's experience with the machine, it was decided that the machine had an estimated useful life of 15 years from the date of acquisition. What is the amount of depreciation expense on this machine in 2013 using a new annual depreciation charge for the remaining 10 years?
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