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Maurinko [17]
3 years ago
6

When originally purchased, a vehicle costing $25,560 had an estimated useful life of 8 years and an estimated salvage value of $

3,000. after 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. the depreciation expense in year 5 equals:?
Mathematics
1 answer:
e-lub [12.9K]3 years ago
5 0
If straight-line depreciation is used, the value being depreciated over 8 years is
  25,560 -3,000 = 22,560
so the depreciation in 4 years is
  22,560*4/8 = 11,280
This is also the remaining value to be depreciated, now in 2 years. The depreciation in year 5 is
  11,280/2 = 5,640
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