7. On January 1, 20X1, Brandon Excavation Company purchased a new bulldozer for $120,000. The equipment had an estimated useful life of ten years and an estimated residual value of $10,000. On January 1, 20X3, Brandon determined that the bulldozer would have a total useful life of only eight years instead of ten years (i.e., it has 6 years left of useful life). Brandon uses straight-line depreciation. Compute depreciation expense on this bulldozer for 20X1, 20X2, and 20X3.
7. On January 1, 20X1, Brandon Excavation Company purchased a new bulldozer for $120,000. The equipment had an estimated useful life of ten years and an estimated residual value of $10,000. On January 1, 20X3, Brandon determined that the bulldozer would have a total useful life of only eight years instead of ten years (i.e., it has 6 years left of useful life). Brandon uses straight-line depreciation. Compute depreciation expense on this bulldozer for 20X1, 20X2, and 20X3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7
Transcribed Image Text:7. On January 1, 20X1, Brandon Excavation Company purchased a new bulldozer for $120,000. The
equipment had an estimated useful life of ten years and an estimated residual value of $10,000. On
January 1, 20X3, Brandon determined that the bulldozer would have a total useful life of only eight
years instead of ten years (i.e., it has 6 years left of useful life). Brandon uses straight-line
depreciation.
Compute depreciation expense on this bulldozer for 20X1, 20X2, and 20X3.
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