Answer:
Annual depreciation= $8,000
Explanation:
<u>First, we need to calculate the accumulated depreciation for the first two years:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (50,000 - 10,000) / 8
Annual depreciation= $5,000
Accumulated depreciation= 5,000*2= $10,000
<u>Now, we can calculate the new depreciation expense:</u>
Annual depreciation= [(50,000 - 10,000) - 8,000]/4
Annual depreciation= $8,000