The following information is available about a depreciable asset owned by Mutual Savings Bank:

Purchase date	July 1, Year 1
Purchase price	$101,500
recovery value	11,500 dollars
useful life	10 years
depreciation method	right

3. Year 1 July, the carrying amount of the asset is TL 83,500. At this date, management decides that the salvage value of the asset should be $6,500 instead of the original estimate of $11,500. Based on this information, calculate the amount of depreciation expense that the company should recognize in the last six months of Year 3.

Martin Company buys a machine for $80,000 at the beginning of the year. The machine is depreciated using the double declining balance method. The useful life of the machine is estimated to be 4 years with a salvage value of $6,600. calculate Depreciation expense in year 4.

Answer rating: 100% (QA)

For the first problem we need to calculate the depreciation expense for the last six months of Year 3 given the new salvage value of 6500 The carrying ... View the full answer