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Exercise 7-14A Determine depreciation expense for a change in depreciation estimate (L07-4) The Donut Stop acquired equipment for $26,000. The company uses straight-line depreciation and

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Exercise 7-14A Determine depreciation expense for a change in depreciation estimate (L07-4) The Donut Stop acquired equipment for $26,000. The company uses straight-line depreciation and estimates a residual value of $4.000 and a four-year service life. At the end of the second year , the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time, the company also changed the estimated residual value to $1,600 from the original estimate of $4,000, Required: Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6. Cost of them Accumulated Depreciation Years and 2) Bock ve end of year 2 New residus New deprecate cost Reming service Annual depreciation in years 3 10 6

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