Bridgeport Corp. purchased a piece of equipment for $36,000. It estimated a 8-year life and $1,440 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 10 years and the new salvage value to be $2,880.

Compute the revised depreciation. Company uses straight-line depreciation method. (Round answer to 0 decimal places, e.g. 125.)

Revised depreciation

$enter the revised depreciation in dollars

Answer rating: 100% (QA)

Step1Calculation of book value of Equipment at the end of year 3 Cost Accumulated depreciat... View the full answer