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K Corp purchased a machine on January 1, 2025, for $820,000. Estimated life of the van was five years, and its estimated residual value was
K Corp purchased a machine on January 1, 2025, for $820,000. Estimated life of the van was five years, and its estimated residual value was $83,000. K Corp uses the straightline method of depreciation. At the beginning of 2026, the corporation revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2026.
K Corp purchased a machine on January 1, 2025, for $820,000. Estimated life of the van was five years, and its estimated residual value was $83,000. K Corp uses the
straightline
method of depreciation. At the beginning of 2026, the corporation revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2026. Step by Step Solution
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