• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a total of six years with no residual value. What depreciation would June record for the year 2022 on this equipment? O $108,333. O $106,667. O $122,500. O None of the above is correct.

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Chapter7: Operating Assets
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Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...
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• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June
depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a
$10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a
total of six years with no residual value. What depreciation would June record for the year 2022
on this equipment?
O $108,333.
O $106,667.
O $122,500.
O None of the above is correct.
Transcribed Image Text:• June Corporation purchased equipment on 1/1/20 for $650,000. In 2020 and 2021, June depreciated the asset on a straight-line basis with an estimated useful life of 8 years and a $10,000 residual value. In 2022, due to changes in technology, June revised the useful life to a total of six years with no residual value. What depreciation would June record for the year 2022 on this equipment? O $108,333. O $106,667. O $122,500. O None of the above is correct.
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