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The following information is available on a depreciable asset owned by Mutual Savings Bank: Purchase date June 1, Year 1 Purchase price $95,500 Salvage value
The following information is available on a depreciable asset owned by Mutual Savings Bank: |
Purchase date | June 1, Year 1 |
Purchase price | $95,500 |
Salvage value | $11,800 |
Useful life | 9 years |
Depreciation method | straight-line |
The asset's book value is $76,900 on June 1, Year 3. On that date, management determines that the asset's salvage value should be $6,800 rather than the original estimate of $11,800. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be: |
$5,007.14
$2,436.61
$2,746.43
$2,082.14
$2,503.57
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