Humphrey Contractors purchased customized equipment in January, 2021 for $700,000. The manufacturer warranted the equipment for six years. Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value. After two full years, he now believes that the equipment will only last a total of five years. Compute his depreciation expense for 2023 if he switches to straight-line depreciation. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Group of answer choices $140,000 $87,500 $131,250 $105,000

Humphrey Contractors purchased customized equipment in January, 2021 for $700,000. The manufacturer warranted the equipment for six years. Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value. After two full years, he now believes that the equipment will only last a total of five years. Compute his depreciation expense for 2023 if he switches to straight-line depreciation. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Group of answer choices $140,000 $87,500 $131,250 $105,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9PA: For each of the following unrelated situations, calculate the annual amortization expense and...

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