CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Do It! Review 9-2b Your answer

Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Do It! Review 9-2b Your answer is incorrect. Try again. Sheffield Corp. purchased a piece of equipment for $67,800. It estimated a 6-year life and $3,200 salvage value. At the end of year 3 (before the depreciation adjustment), it estimated the new total life to be 8 years and the new salvage value to be $6,000 Compute the revised depreciation. Company uses straight-line depreciation method. (Round answer to O decimal places, e.g. 125.) Revised depreciation LINK TO TEXT Question Attempts: Unlimited SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Compute Revised depreciation :

Present depreciation = (original cost-salvage value)/useful life

= (67800-3200)/6

Present depreciation = 10767 per annum

Two year dep = 10766.66*2 = 21533.33

Revised depreciation = (67800-21533.33-6000)/6 = 6711

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