QS 10-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a 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 Remaining depreciable cost Depreciation per year for years 2 and 3

FINANCIAL ACCOUNTING
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QS 10-10 (Algo) Computing revised depreciation LO C2
On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use this equipment for four years and
after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the
second year that this equipment will last only a 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
Remaining depreciable cost
Depreciation per year for years 2 and 3
Transcribed Image Text:QS 10-10 (Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $1,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a 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 Remaining depreciable cost Depreciation per year for years 2 and 3
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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