Class Exercises and Explanations Aggie Co. purchased equipment on July 1, 2006, at a cost of $220,000. The asset was estimated to have a 12-year life with a residual value of $4,000. Aggie uses straight-line depreciation. On Jan 1, 2009, Aggie revised its remaining estimated life to 5 years, with a residual value of $5,000 and use double decline balance depreciation. How to record the depreciation expense in 2010