The Elmo Company purchased equipment on January 1, Year 1 at a cost of $25,000. The equipment was estimated to last for 8 years and have a salvage value of $1,000. On January 1, Year 5, it was determined that the life of the equipment was really 10 years, and the salvage value was expected to remain unchanged. What amount of yearly depreciation expense was recorded for the equipment for years 1 through 10? The firm uses the straight-line method of depreciation.

The Elmo Company purchased equipment on January 1, Year 1 at a cost of $25,000. The equipment was estimated to last for 8 years and have a salvage value of $1,000. On January 1, Year 5, it was determined that the life of the equipment was really 10 years, and the salvage value was expected to remain unchanged. What amount of yearly depreciation expense was recorded for the equipment for years 1 through 10? The firm uses the straight-line method of depreciation