Question 2

Question 2 Equipment was acquired on January 1, 2011, at a cost of $90,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2014, using the straight-line method. On January 1, 2015, the estimated salvage value was revised to $6,000 and the useful life was also revised on the same date. The revised depreciation (adjusted depreciation) was calculated to be 55 12,500! year. Instructions Determine the revised (new) useil life of the equipment (show your calculation)