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

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

Name: LO 6Exercise 8-15A Revision of estimated useful lifeOn January 1, 201
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Description: LO 6Exercise 8-15A Revision of estimated useful lifeOn January 1, 2011, Harris Machining Co. purchased a compressor and related installationequipment for $64,000. The equipment had a three-year estimated life with a $4,000 salvagevalue. Straight-lin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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