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Kenneth's Car Wash (KCW) used straight-line depreciation for equipment that cost $52,000, under the assumption it would have a 4-year life and a $7,500 residual
Kenneth's Car Wash (KCW) used straight-line depreciation for equipment that cost $52,000, under the assumption it would have a 4-year life and a $7,500 residual value and was purchased January 1, 2018. On January 1, 2020, KCW determined that the equipment has a total 5 year useful life and an estimated $4,100 residual value. KCW has a December 31 year end and prepares financial statements annually. DO NOT ADD COMMAS OR DOLLAR SIGNS TO YOUR ANSWERS. IF YOUR NUMBER IS $25,000 YOU WILL RECORD IT AS 25000 REQUIRED: Blank 1) Calculate the equipment's depreciation expense for the year ended December 31, 2019. Blank 2) Calculate the equipment's accumulated depreciation at December 31, 2019. Blank 3) Calculate the equipment's remaining book value at January 1, 2020. Blank 4) What is the revised residual value? Blank 5) What is the revised remaining useful life? Blank 6) Calculate the depreciation expense for the year ended December 31, 2020
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