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On January 1, 2014, Muoy Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three-year estimated life with a
On January 1, 2014, Muoy Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three-year estimated life with a $12,500 salvage value. Straight-line depreciation was used. At the beginning of 2016, Muoy revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,500. Required Compute the depreciation expense for each of the four years.
2014:
2015:
2016:
2017:
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