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ss7ja [257]
3 years ago
9

When originally purchased, a vehicle costing $24,120 had an estimated useful life of 8 and an estimated salvage value of $2,200.

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:?
Business
1 answer:
Stels [109]3 years ago
3 0
24120-2200=21920 to depreciate over 8 yrs. 21920/8=2740/yr. depreciate for 4 yrs (4*2740=10960). 24120-10960 = 13160 remaining to amortize.
13160-2200= 10960 to depreciate over remaining 2 yrs (6 yr total life with 4 yrs already amortized). 10960/2=5480 per yr.

This one is complex so please validate with classmate or teacher
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