Question
The following information is available on a depreciable asset owned by Mutual Savings Bank: Purchase date July 1, Year 1 Purchase price $80,500 Salvage value
The following information is available on a depreciable asset owned by Mutual Savings Bank:
Purchase date July 1, Year 1
Purchase price $80,500
Salvage value $10,300
Useful life 9 years
Depreciation method straight-line
The asset's book value is $64,900 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $5,300 rather than the original estimate of $10,300. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:
a) 2317.86
b)4257.14
c)2061.61
d)1760.71
e)2128.57
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