Answer:
Annual depreciation for the first two years is $4,910.00
Book value at the end of year 2 $44,180.00
depreciation expense for each of the remaining years after revision is $21,110.00
Explanation:
The initial depreciation =cost-salvage value/useful life
cost was $54,000
salvage value is $4,900
useful life was 10 years
initial depreciation charge=($54,000-$4,900)/10=$4,910.00
Book value at the end of year 2=cost-depreciation for first 2 years
book value at the end of year 2=$54,000-($ 4,910*2)=$44,180.00
Depreciation expense for remaining years=($44,180-$1,960)/2=$21,110.00
