Venkat Engineering decided to change the depreciation of his old industrial evaporator. He had purchased

the old evaporator on June $1$ two$(2)$ years ago for $$17,700.$ The salvage$/$residual value was $$500$ and the

useful life Venkat was thought to be $5$ years. Venkat depreciated his machinery using a Straight Line basis.

At the start of the third year, Venkat decided to decrease the salvage value to zero and the useful life to $2$

additional years but continue to use the straight$-$line method.

a$)$ What is the original depreciation amount?

Show your calculation below:

b$)$ What is book value of this equipment at the end of the first $2$ years?

c$)$ What is the revised depreciation amount beginning in the third year?

Show how you calculated revised depreciation below:

d$)$ Prepare the journal entry to record depreciation for the third year for the June $30$ year end.

Date

Description

Debit

Credit

June