Sheffield Company purchased equipment on January 1, 2019, for $111,800 with an estimated salvage value of...

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Sheffield Company purchased equipment on January 1, 2019, for $111,800 with an estimated salvage value of $31,200 and estimated useful life of 8 years. On January 1, 2021, Sheffield decided the equipment will last 12 years from the date of purchase. The salvage value is still estimated at $31,200. Using the straight-line method the new annual depreciation will be: New annual depreciation Sheffield Company purchased equipment on January 1, 2019, for $111,800 with an estimated salvage value of $31,200 and estimated useful life of 8 years. On January 1, 2021, Sheffield decided the equipment will last 12 years from the date of purchase. The salvage value is still estimated at $31,200. Using the straight-line method the new annual depreciation will be: New annual depreciation

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To calculate the new annual depreciation using the straightline depreciation method we need to consi... View the full answer