Chapter 7 Exercises (Static) Check my work mode : This shows whe 9 2:23:25 Exercise 7-14A Determine depreciation expense for a change in depreciation estimate (L07-4) The Donut Stop acquired equipment for $19,000. The company uses straight-line depreciation and estimates a residual value of $3,000 and a four-year service life. At the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time. the company also changed the estimated residual value to $1.200 from the original estimate of $3,000 Required: Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6. X Answer is not complete. $ 19,000 16,000 Cost of the equipment Less: Accumulated Depreciation (Years 1 and 2) Book value, end of year 2 Less: New residual value New depreciable cost Remaining service life Annual depreciation in years 3 to 6 1.2007)