Equipment with a cost of $85,862.00, an estimated residual value of $4,045.00, and an estimated life of 11 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is

Select the correct answer.

$28,055.18

$29,751.64

$6,234.48

$5,100.94

An asset was purchased for $122,000.00 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $11,500.00. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,600.00. Calculate the third-year depreciation expense using the revised amounts and straight line method.

Select the correct answer.

$25,575.00

$25,075.00

$24,575.00

$23,575.00