Franklin Company purchased a machine on January 1, 2010, paying $150,000 The machine was estimated to have a useful life of eight years and an estimated salvage value of $30,000 In early 2012, the company elected to change its depreciation method from straight line to sum of the years ' digits for ...

Depreciation for the first 2 years 150000 3 ...

Franklin Company purchased a machine on January 1, 2010, paying $150,000. The machine was estimated to have

Question:

Franklin Company purchased a machine on January 1, 2010, paying $150,000. The machine was estimated to have a useful life of eight years and an estimated of $30,000. In early 2012, the company elected to change its depreciation method from straight-line to sum-of-the years'-digits for future periods. What should be the charge for depreciation for 2012?
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...