Equipment was acquired on January 1, 2010, at a cost of 2,000,000. The equipment was originally estimated to have a residual value of 100,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2013, using the straight-line method. On January 1, 2014, the estimated residual value was revised to 140,000 and the useful life was revised to a total of 8 years.

Instructions

Determine the Depreciation Expense for 2014.

Ex. 274

Equipment was acquired on January 1, 2010, at a cost of 2,000,000. The equipment was originally estimated to have a residual value of 100,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2013, using the straight-line method. On January 1, 2014, the estimated residual value was revised to 140,000 and the useful life was revised to a total of 8 years.

Instructions

Determine the Depreciation Expense for 2014.