Cantaloupe Company acquired equipment on January 1, Year 1 for $570,000. Estimated useful life of the...

 

Transcribed Image Text:

Cantaloupe Company acquired equipment on January 1, Year 1 for $570,000. Estimated useful life of the equipment was seven years and the estimated residual value was $11,000. On January 1, Year 4, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. Calculate depreciation expense for Year 4. Cantaloupe Company acquired equipment on January 1, Year 1 for $570,000. Estimated useful life of the equipment was seven years and the estimated residual value was $11,000. On January 1, Year 4, after using the equipment for three years, the total estimated useful life has been revised to nine total years. Residual value remains unchanged. The company uses the straight-line method of depreciation. Calculate depreciation expense for Year 4.

Answer rating: 100% (QA)

To calculate the depreciation expense for Year 4 we need to determine the revised annual depreciat... View the full answer