Equipment with a cost of $78,450, an estimated residual value of $4,568, and an estimated life of 13 years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$14,783.54 b.$34,099.38 c.$4,435.06 d.$3,411.59

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Equipment with a cost of $78,450, an estimated residual value of $4,568, and an estimated life of 13
years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was determined
that the remaining useful life should be shortened by 4 years and the residual value changed to zero.
The depreciation expense for the current and future years is
a.$14,783.54
b.$34,099.38
c.$4,435.06
d.$3,411.59
Transcribed Image Text:Equipment with a cost of $78,450, an estimated residual value of $4,568, and an estimated life of 13 years was depreciated by the straight-line method for 6 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is a.$14,783.54 b.$34,099.38 c.$4,435.06 d.$3,411.59
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