Depreciation Steeler Corporation purchased equipment on January 1, 2016. This is the only equipment that the company owns. The purchase price of the equipment was $486,000. The estimated life of the equipment was 12 years, and the estimated salvage value was $36,000.

Steeler Corp uses the Straight Line Depreciation method for all equipment. What would Steeler report as the depreciation expenses for 2016 and for 2017 ?

After using the equipment for two years, on January 1, 2018 (The BEGINNING of 2018) , ABC offered Steeler $399,000 for the equipment. If Steeler were to accept the offer, how much would be the gain or loss on the sale of the equipment ?

On January 1, 2018, Steeler changed his estimates relating to the equipment. He now expects the equipment to have a useful life of 15 years (instead of 12), and a salvage value of $21,000 (instead of $36,000). What would be the depreciation expense in 2018 ?