Equipment was acquired on January 1, 2008, at a cost of $160,000. The equipment was originally estimated
Question:
Equipment was acquired on January 1, 2008, at a cost of $160,000. The equipment was originally estimated to have a salvage value of $10,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2011, using the straight-line method. On January 1, 2012, the estimated salvage value was revised to $12,000 and the useful life was revised to a total of 8 years.
Instructions
Determine the Depreciation Expense for 2012.
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...
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Calculate the book value at the time of the revision 4 years ...View the full answer
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Related Book For 
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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