Question
Luna corporation purchased equipment on January 1, 2019, for $95000. In 2019 and 2020, Luna depreciated the asset on a straight-line basis with an estimated
Luna corporation purchased equipment on January 1, 2019, for $95000. In 2019 and 2020, Luna depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $23,500 residual value. In 2021, due to changes in technology, Luna revised the useful life to a total of 6 years with no residual value. What depreciation would Luna record for the year 2021 on this equipment?
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Petroleum Accounting: Principles, Procedures; And Issues
Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou
8th Edition
0940966328, 978-0940966321
