Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and 2015, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $12,000 residual value. In 2016, due to changes in technology, Nanki revised the useful life to a total of 5 years with no residual value. What depreciation would Nanki record for the year 2016 on this equipment? (Round your answer to the nearest dollar amount.) Multiple Choice $100,667. None of these answer choices are correct. $100,954. $155,000.

Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and 2015, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $12,000 residual value. In 2016, due to changes in technology, Nanki revised the useful life to a total of 5 years with no residual value. What depreciation would Nanki record for the year 2016 on this equipment? (Round your answer to the nearest dollar amount.) Multiple Choice $100,667. None of these answer choices are correct. $100,954. $155,000.

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Description: Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and2015, Nanki depreciated the asset on a straight-line basis with an estimated useful life ofeight years and a $12,000 residual value. In 2016, due to changes in techno

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Nanki Corporation purchased equipment on January 1, 2014, for $616,000. In 2014 and
2015, Nanki depreciated the asset on a straight-line basis with an estimated useful life of
eight years and a $12,000 residual value. In 2016, due to changes in technology, Nanki
revised the useful life to a total of 5 years with no residual value. What depreciation
would Nanki record for the year 2016 on this equipment? (Round your answer to the
nearest dollar amount.)
Multiple Choice
$100,667.
None of these answer choices are correct.
$100,954.
$155,000.

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