8 Be. 226 -9 Equipment was acquired on January 1, 2018 at a cost of $75,000. The equipment was originally estimated to h

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8 Be 226 9 Equipment Was Acquired On January 1 2018 At A Cost Of 75 000 The Equipment Was Originally Estimated To H 1 (49.79 KiB) Viewed 118 times

8 Be. 226 -9 Equipment was acquired on January 1, 2018 at a cost of $75,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through December 31, 2021 using the straight-line method. On January 1, 2022, the estimated salvage value was revised to $7,000 and the useful life was revised to a total of 8 years. Instructions Determine the depreciation expense for 2022. Answer Calculate the book value at the time of the revision: annual depreciation expense years 4 years have been depreciated: x4 - $ Book value at the time of the revision: (Cost - (ann.dep. x 4 yrs.)) Calculate the revised annual depreciation: $ - $ revised annual depreciation (Book val. - sal. val.) + (8 yrs. - 4 yrs.) 4 years remaining The depreciation expense for 2022 is. S