Yellow Ltd purchased an asset six years ago for $75 000. At that time it was deemed to have a residual value of $15 000 and estimated useful life of six years. After four years of use, the asset was overhauled at a cost of $35 000. The overhaul extended the useful life of the asset by four more years but reduced its residual value to $7000. 

Assuming the straight-line method of depreciation is applied; calculate the depreciation expense in the year after the overhaul (rounded to the nearest dollar)?

Answer rating: 100% (QA)

The total depreciable cost of the asset is the original cost ... View the full answer