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Machinery was acquired on January 1, 2002, at a cost of $85,000. The machinery was originally estimated to have a salvage value of $5,000 and
Machinery was acquired on January 1, 2002, at a cost of $85,000. The machinery was originally estimated to have a salvage value of $5,000 and an estimated useful life of 10 years. Depreciation has been recorded through December 31, 2005, using the straight line method. On January 1,2006, the estimated salvage value was revised to $3,000 and the useful life was revised to a total of 12 years.
Determine the depreciation expense for 2006. And show your work
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