1.MLJ Manufacturing has prepared the following depreciation schedule: Straight-line depreciation schedule of snow blowers Year 1 Year 2 Year 3 Year 4 Annual depreciation Book value $85,000 63,750 42,500 21,250 0 $21,250 21,250 21,250 21,250 Suppose at the beginning of year 3, MLJ Manufacturing no longer believes the snow blowers will last 4 years, but instead decides the snow blowers will last 6 total years. Assume the residual value of the snow blowers is $0. Required: 1) What is the new depreciation expense for Year 3 and Year 4? 2) What is the new book value after Year 4 records depreciation expense? 3) What is the accumulated depreciation amount after Year 6 records depreciation expense?

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1.MLJ Manufacturing has prepared the following depreciation schedule: Straight-line depreciation schedule of snow blowers Annual depreciation Book value Year 1 Year 2 Year 3 Year 4 $21,250 21,250 21,250 21,250 $85,000 63,750 42,500 21,250 0 Suppose at the beginning of year 3, MLJ Manufacturing no longer believes the snow blowers will last 4 years, but instead decides the snow blowers will last 6 total years. Assume the residual value of the snow blowers is $0. Required: 1) What is the new depreciation expense for Year 3 and Year 4? 2) What is the new book value after Year 4 records depreciation expense? 3) What is the accumulated depreciation amount after Year 6 records depreciation expense? 1.MLJ Manufacturing has prepared the following depreciation schedule: Straight-line depreciation schedule of snow blowers Annual depreciation Book value Year 1 Year 2 Year 3 Year 4 $21,250 21,250 21,250 21,250 $85,000 63,750 42,500 21,250 0 Suppose at the beginning of year 3, MLJ Manufacturing no longer believes the snow blowers will last 4 years, but instead decides the snow blowers will last 6 total years. Assume the residual value of the snow blowers is $0. Required: 1) What is the new depreciation expense for Year 3 and Year 4? 2) What is the new book value after Year 4 records depreciation expense? 3) What is the accumulated depreciation amount after Year 6 records depreciation expense?