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Computing Depreciation Expense for Change in Useful Life Phelps Company purchases equipment on January 1 of Year 1, for $14,400 which will be depreciated

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Computing Depreciation Expense for Change in Useful Life Phelps Company purchases equipment on January 1 of Year 1, for $14,400 which will be depreciated using the sum-of-years'-digits method. The equipment has a residual value of $2,400 and a useful life of three years. On January 1 of Year 2, Phelps decides that the machine has an original total useful life of four years (instead of three years) and $1,200 residual value. What is depreciation expense for Year 2? Depreciation expense for Year 2: $ 0 X Check

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