Phelps Company purchases equipment on January 1 of Year 1 for $21,600 which will be depreciated using the sum-of-years’-digits method. The equipment has a residual value of $3,600 and a useful life of three years. On January 1 of Year 2, Phelps changes its depreciation method for equipment to the straight-line method. What is depreciation expense for Year 2?

Answer rating: 100% (QA)

Answer Depreciation expense for 2020 is 5400 Cost 2... View the full answer