On January 1, the Matthews Band pays $65,200 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last onlya total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Book value at point of revision 23,925 Remaining depreciable cost 49,850 Depreciation per year for years 2 and 3 23,925 %24 %24 %24

On January 1, the Matthews Band pays $65,200 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last onlya total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years. Book value at point of revision 23,925 Remaining depreciable cost 49,850 Depreciation per year for years 2 and 3 23,925 %24 %24 %24

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 15PB: Urquhart Global purchases a building to house its administrative offices for $500,000. The best...

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