A company purchased a machine for $75,000 that was expected to last 6 years and to have

Question:

A company purchased a machine for $75,000 that was expected to last 6 years and to have a of $6,000. At the beginning of the machine's fourth year the company decided that the machines estimated useful life should be revised to a total of 10 years instead of 6 years. Also, the was re-estimated to be $5,500. Straight-line depreciation was used throughout the machine's life. Calculate the depreciation expense for the fourth year of the machine's useful life.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...