Exercise 10-13 Revising depreciation LO C2

Apex Fitness Club uses straight-line depreciation for a machine costing $26,550, with an estimated four year life and a $2,650 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,200 salvage value. Required: 1. Compute the machines book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision