Problem 9-04A

At the beginning of 2018, Novak Corp. acquired equipment costing $113,800. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $11,380 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2020 (the third year of the equipments life), the companys engineers reconsidered their expectations and estimated that the equipments useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2023, the estimated salvage value was reduced to $5,000. Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table.

Year		Depreciation Expense		Accumulated Depreciation
2018		$		$
2019
2020
2021
2022
2023
2024