QS 8-5 Computing revised depreciation LO C2

On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years. It estimates that after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged.

Compute the revised depreciation for both the second and third years.

, ' Safari File Edit View History Bookmarks Window Help , , 9 L2 4;\" MEI- Thu'l1218PM Q o O O O El] _ newconnectmheducatiomcom Q1 .31 Chp s Quick Study 0 Saved Help Save 1. Exit Submit Check my work 05 8-5 Computing revised depreciation LO CZ 115 On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates points it will use this equipment for four years, It estimates that alter four years it can sell the equipment for $2,000. Matthews Band uses straight~|ine depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this Sklpmd equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years. eEook Book value at point oi revision @ Remaining depreciable cost Him Depreciation per yearfor years 2 and 3 Ti Relerences