LO 6 Exercise 8-15A Revision of estimated useful life On January 1, 2011, Harris Machining Co. purchased a compressor and related installation equipment for $64,000. The equipment had a three-year estimated life with a $4,000 salvage value. Straight-line depreciation was used. At the beginning of 2013, Harris revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,000. Required Compute the depreciation expense for each of the four years. Accounting for Long-Term Operational Assets 427

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LO 6
Exercise 8-15A Revision of estimated useful life
On January 1, 2011, Harris Machining Co. purchased a compressor and related installation
equipment for $64,000. The equipment had a three-year estimated life with a $4,000 salvage
value. Straight-line depreciation was used. At the beginning of 2013, Harris revised the expected
life of the asset to four years rather than three years. The salvage value was revised to $3,000.
Required
Compute the depreciation expense for each of the four years.
Accounting for Long-Term Operational Assets
427
Transcribed Image Text:LO 6 Exercise 8-15A Revision of estimated useful life On January 1, 2011, Harris Machining Co. purchased a compressor and related installation equipment for $64,000. The equipment had a three-year estimated life with a $4,000 salvage value. Straight-line depreciation was used. At the beginning of 2013, Harris revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,000. Required Compute the depreciation expense for each of the four years. Accounting for Long-Term Operational Assets 427
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