In 1/1/2016, ABC company purchased an equipment costing $22000. The useful life was 10 years. The salvage value was $2000. ABC decided to use the straight-line method in calculating depreciation. During 2020, ABC had the following new information: it was found that the equipment will serve another 10 years, starting from 1/1/2020. The salvage value would be $4000 instead of $2000. Then the depreciation expense for 2020 is:

In 1/1/2016, ABC company purchased an equipment costing $22000. The useful life was 10 years. The salvage value was $2000. ABC decided to use the straight-line method in calculating depreciation. During 2020, ABC had the following new information: it was found that the equipment will serve another 10 years, starting from 1/1/2020. The salvage value would be $4000 instead of $2000. Then the depreciation expense for 2020 is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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