Pharoah Limited purchased a computer for $8,600 on January 1, 2020. Straight-line depreciation is used for the computer, based on a five-year life and a $900 residual value. In 2022, the estimates are revised. Pharoah now expects the computer will be used until December 31, 2023, when it can be sold for $700. Calculate the 2022 depreciation expense.

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Purchase cost of computer 8600 Residual value 9... View the full answer