Question: On January 1 2015 the Morgantown Company ledger shows Equipment
On January 1, 2015, the Morgantown Company ledger shows Equipment $32,000 and Accumulated Depreciation-Equipment $9,000. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same salvage value. Compute the revised annual depreciation.
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