Question: On January 1, 2016, Mead Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three-year estimated life with $12,500

On January 1, 2016, Mead Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three-year estimated life with $12,500 salvage value. Straight-line depreciation was used. At the beginning of 2018, Mead revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,500.

Required

Compute the depreciation expense for each of the four years.

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