Question
Question 4 (20 marks) Booker Corporation purchased equipment on June 7, 2015, for $100,000. It has an estimated life of 10 years and a residual
Question 4 (20 marks)
Booker Corporation purchased equipment on June 7, 2015, for $100,000.
It has an estimated life of 10 years and a residual value of $20,000. Booker uses straight line depreciation and rounds to the nearest month. On November 30, 2022, after a discussion with the shop foreman, Booker believes that the equipment will provide a useful life of 12 years and an estimated residual value of $15,000.
Required
Determine depreciation expense for the year 2022. Marks for this question are allocated based on your clearly labelled calculations. (15 marks for calculations; 5 marks for the correct answer.)
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