Essay
On January 1, 2010, Richard Co.bought a machine for $10, 000.Residual value was estimated to be $400 and a five-year life was used for straight-line depreciation.On January 1, 2012, it was estimated that the total life from acquisition date should have been six years and residual value should have been estimated at $600.
Required:
Compute depreciation expense for 2012.
Correct Answer:
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$10, 000 - $400 = $9, 600; $9,...View Answer
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