Question
On January 1, 2015, RCK Eye Center purchased a $240,000 laser.The company depreciated the laser straight line using a 7 year useful life and a
On January 1, 2015, RCK Eye Center purchased a $240,000 laser.The company depreciated the laser straight line using a 7 year useful life and a salvage value of $30,000.On January 1, 2018, the company replaced the main power source of the laser at a cost of $35,000.Following this replacement, the useful life was extended to atotal lifeof 13 years (i.e., the replacement extended the useful life by 6 years)and salvage value is now estimated at $15,000.Please provide the journal entry that RCK Eye Center will record in 2018 for depreciation related to the laser (show any work).
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