Thom Corporation acquired a computer on January 1, 2011, for $10,000,000 The computer had an estimated useful life of six years and $1,000,000 estimated salvage value The firm uses the straight line depreciation method On January 1, 2013, Thom Corporation discovers that new technologies make it lik...

Carrying Value on January 1 2013 1000 ...

Thom Corporation acquired a computer on January 1, 2011, for $10,000,000. The computer had an estimated useful

Question:

Thom acquired a computer on January 1, 2011, for $10,000,000. The computer had an estimated useful life of six years and $1,000,000 estimated . The firm uses the straight-line depreciation method. On January 1, 2013, Thom discovers that new technologies make it likely that the computer will last only four years in total and that the estimated will be only $600,000. Compute the amount of depreciation expense for 2013 for this change in depreciable life and . Assume that the change does not represent an impairment loss.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...