Problem 22-6 (Part Level Submission) On December 31, 2014, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three pieces of equipment Equipment A was purchased January 2, 2011. It originally cost $310,000 and, for depreciation purposes, the straight- line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value. In 2014, the decision was made to change the depreciation method from straight-line to sum-of-the-years' digits, and the estimates relating to useful life and salvage value remained unchanged. Equipment B was purchased January 3, 2010, It originally cost $174,000 and, for depreciation purposes, the straight- line method was chosen. The asset was originally expected to be useful for 15 years and have a zero salvage value. In 2014, the decision was made to shorten the total life of this asset to 9 years and to estimate the salvage value at $3,100 Equipment C was purchased January 5, 2010. The asset's original cost was $169,500, and this amount was entirely expensed in 2010. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. 2. 3. Additional data: 1. Income in 2014 before depreciation expense amounted to $354,000. 2. Depreciation expense on assets other than A, B, and C totaled $56,100 in 2014 3. Income in 2013 was reported at $323,000. 4. Ignore all income tax effects 5. 113,700 shares of common stock were outstanding in 2013 and 2014