Question

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:?

Answer 1

$5,375, The method used is finding the original deprecation per year rate and then find the net book value. Find the difference between this and the original salvage value and divide by the number of years left.