On January 1, a company purchased equipment for $15,000. The estimated salvage value is $3,000 and the estimated useful life is 4 years. On December 31, 2017 of the third year, and before adjusting entries have been made, the company decided to extend the estimated useful life of the equipment by one year giving it a total life of 5 years. The company did not change the salvage value and continues to use the straight-line method. What is the depreciation expense for the third year? 

• $2,250 
• $2,000 
• $4,000 
• $3,500 
• $2,500

Answer rating: 100% (QA)

Annual depreciation expense for first three years Cost salvage life 15000 3000 4 30... View the full answer