On January 1, 2010, Arbuckles Carpet Cleaners purchased a machine at a cost of $42,000. The machine

Question:

On January 1, 2010, Arbuckle’s Carpet Cleaners purchased a machine at a cost of $42,000. The machine was expected to have a useful life of six years and no salvage value. The straight-line depreciation method was used. In January 2013, the estimate of salvage value was revised from $0 to $3,000. How much depreciation should Arbuckle’s record for 2013?

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...