Question: On January 1 2010 the Premium Beer Corporation purchased equipment
On January 1, 2010, the Premium Beer Corporation purchased equipment at a cost of $110,000. It was expected to have a useful life of eight years and no salvage value. The straight-line depreciation method was used. In January 2012, the estimate of salvage value was revised from $0 to $7,500. How much depreciation should Premium Beer Corporation record for 2012?
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