Depreciation Exercise Chambers Corporation purchased a piece of equipment for $40,000. It estimated an 8-year life and $8,000 salvage value. The company uses straight-line depreciation method. At the end of year three (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $2,000. Requirements 1. Compute the depreciation for the first three years and the revised depreciation. 2. Compute the revised depreciation for years 4 to 10