Question 9 Hemming Co. pays $154,000 for equipment expected to last 4 years. It estimates the equipment's salvage value of $25,000. At the beginning of Year 3, when the book value of the equipment is $89,500, the company determined that the equipment will have a remaining useful life of 5 years, and the estimated salvage value will be revised downward from $25,000 to $20,000. The depreciation expense at the end of Year 3 is: Same as in Years 1 and 2 O $32,250 $13,900 O $61,700 +

Hethrmind Co. payn 5154,000 for equipment expected to last 4 yetars. It estimates the equipment's salvage value of $25, ooo. At the bageinning of Yaar 3 , when the book valuo of the equipment is $89.500, the company deterrmined that the equipment wil have a romaining useful Net of 5 years, and the estimated salvage value will be revised dowmward from 325,000 to 520,000 . The depreclation expense at the end of Year 3 is: Same as in Kevars 1 and 2 1322250 512.000 461,700