On January 1, 2010, the Premium Beer Corporation purchased equipment at a cost of $110,000. It was

Question:

On January 1, 2010, the Premium Beer Corporation purchased equipment at a cost of $110,000. It was expected to have a useful life of eight years and no salvage value. The straight-line depreciation method was used. In January 2012, the estimate of salvage value was revised from $0 to $7,500. How much depreciation should Premium Beer Corporation record 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...