Kami Company purchased equipment costing $95,000. The equipment has an estimated useful life of 10 years with an estimated salvage value of $5,000. At the end of year 9, they decide to extend the useful life to 12 years (total). The new salvage value is estimated to be $2,000.

a.What is the annual depreciation for years 1 -9?

b. What is the book value at the end of year 9?

c.What is the new annual depreciation for years 10,11, and 12?