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Holt Company purchased a computer for $8,000 on January 1, 2013. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value.

image text in transcribed Holt Company purchased a computer for $8,000 on January 1, 2013. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value. In 2015, the estimates are revised. Holt now feels the computer will be used until December 31, 2016, when it can be sold for $500. This changes the asset life to a total of 4 years. Compute the 2015 depreciation. Step 1: Compute book value at beginning of year of change in estimate [Select] Step 2: Compute revised depreciation expense [Select]

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