exercise 1

Exercise One At the beginning of 2018, Berube Company acquired equipment costing S40,000. It was estimated that this equipment would have a useful life of five years and a residual value of $4,000. The straight-line method of amortization was considered the most appropriate to use with is type of equipment, and amortization is to be recorded at the end of each year. At the beginning of 2020 (third year of the equipment's life), the company's engineers reconsidered their expectations and estimated that the equipment's useful life would probably be six years in total instead of five years. The estimated residual value was not changed. At the beginning of 2022, the estimated residual value was reduced to $2,500. Indicate how much amortization expense should be recorded for this equipment each year, by completing the following table: Amortization Expense Accumulated Amortization Year 2018 2019 2020 2021 2022 2023