Equipment worth $60,000 with a salvage value of $12,000 and an estimated life of 8 years is depreciated using the straight-line method over 2 years. Depreciation expense for Year 3, assuming a revised estimated total life of 5 years and no change in salvage value ?

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The depreciable cost of the equipment is the cost of the equipment minus the salvage value which is 60000 12000 48000 The annual depreciation expense using the straightline method is calculated as the ... View the full answer