Problem 6-28A (Algo) Revision of estimated useful life of tangible assets LO 6-6 Banger Company purchased delivery equipment for $45,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years and a $3,000 salvage value. Banger uses the straight-line method to compute the depreciation expense. At the beginning of year 4, Banger revised the useful life of the delivery equipment to be a total of seven years. The estimated salvage value was not changed. Compute the depreciation expense for each of the seven years. Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Depreciation Expense $ $ $ 8,400 8,400 8,400

Problem 6-28A (Algo) Revision of estimated useful life of tangible assets LO 6-6 Banger Company purchased delivery equipment for $45,000 on January 1, Year 1. Banger estimated that the delivery equipment would have a life of five years and a $3,000 salvage value. Banger uses the straight-line method to compute the depreciation expense. At the beginning of year 4, Banger revised the useful life of the delivery equipment to be a total of seven years. The estimated salvage value was not changed. Compute the depreciation expense for each of the seven years. Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Depreciation Expense $ $ $ 8,400 8,400 8,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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