1. Equipment with a cost of $180 000, an estimated residual value of $40 000 and an estimated life of 10 years was depreciated by the straight-line method for 4 years.

   Due to obsolescence, it was determined that the useful life should be shortened by 3 years and the residual value changed to zero.

   The depreciation expense for the current and future years is:

   		$16,487
   		$37,365
   		$41,333
   		$37,333