Renewable Energies, Incorporated (REI) paid $108,000 to purchase a windmill. The windmill was expected to have an 8-year useful life and a $21,600 salvage value. At the beginning of the fifth year of operation, REI changed the estimated useful life from 8 years to 14 years. Assuming the company uses the straight-line method, the amount of accumulated depreciation on the Year 6 balance sheet would be:   Multiple Choice   $64,800.   $47,520.   $51,840.   $43,200.

Principles of Accounting Volume 1
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Chapter11: Long-term Assets
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Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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Renewable Energies, Incorporated (REI) paid $108,000 to purchase a windmill. The windmill was expected to have an 8-year useful life and a $21,600 salvage value. At the beginning of the fifth year of operation, REI changed the estimated useful life from 8 years to 14 years. Assuming the company uses the straight-line method, the amount of accumulated depreciation on the Year 6 balance sheet would be:

 

Multiple Choice
  •  

    $64,800.

  •  

    $47,520.

  •  

    $51,840.

  •  

    $43,200.

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