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Computing Depreciation and Accounting for a Change of Estimate Lambert Company acquired machinery costing $120,000 on January 2, 2016. At that time, Lambert estimated that

Computing Depreciation and Accounting for a Change of Estimate

Lambert Company acquired machinery costing $120,000 on January 2, 2016. At that time, Lambert estimated that the useful life of the equipment was 6 years and that the residual value would be $15,000 at the end of its useful life. Compute depreciation expense for this asset for 2016, 2017, and 2018 using the:

C. Assume that on January 2, 2018, Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to $10,000. What would be the new depreciation expense in 2018 for each of the above depreciation methods? Round to the nearest dollar.

Straight Line Method:

Double Declining Balance:

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