Frankel Feed Purchased a New Machine on January 1, 2014

Essay

Frankel Feed purchased a new machine on January 1, 2014. Relevant information is as follows: $\begin{array}{lr}\text { Cost when acquired } & \$ 26,000 \\\text { Estimated residual value } & 2,000 \\\text { Estimated useful life } & 10 \text { years } \\\begin{array}{l}\text { Accumulated depreciation at the end of year } 5 \\\text { (assume straight-line depreciation) }\end{array} & 12,000\end{array}$ It is now the beginning of year 6 and the management reevaluated the estimates related to the machine.
Required:
Compute the depreciation expense for year 6 under each of the following independent cases: Case $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Event
A $\quad$$\quad$ The estimated total useful life is changed to 15 years, residual value is unchanged.
B $\quad$$\quad$ The residual value is changed to $\$ 1,000$ ; useful life unchanged.
C $\quad$$\quad$ The estimated total useful life is changed to 7 years and the residual value is changed to $\$ 3,000$ .