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Situation 1: Marigold Corporation purchased electrical equipment at a cost of $11,900 on June 2, 2020. From 2020 through 2023, the equipment was depreciated on
Situation 1: Marigold Corporation purchased electrical equipment at a cost of $11,900 on June 2, 2020. From 2020 through 2023, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $2,300 residual value. After more experience and before recording 2024's depreciation, Marigold revised its estimate of the machine's useful life downward from a total of 10 years to 8 years, and revised the estimated residual value to $1,900. On April 29, 2025, after recording part of a year's depreciation for 2025, the company traded in the equipment for a newer model, and received a $3,800 trade-in allowance, even though the equipment's fair value was only $2,700. The new asset had a list price of $14,700 and the supplier accepted $10,800 cash for the balance. The new equipment was depreciated on a straight-line basis, assuming a seven-year useful life and a $1,110 residual value. Determine the amount of depreciation expense reported by Marigold for each fiscal year for the years ended December 31, 2020, to December 31, 2025. (Round depreciation expense per month and final answers to 0 decimal places, e.g. 5,275.)
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