Essay
On January 1, 2017, Airedale Company purchased new equipment for $1,125,000. The equipment had an estimated $90,000 salvage value at the end of its estimated ten-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2022, Airedale Company reduces the useful life of the equipment by one year and decreases the salvage value to $67,500.
Required:
a. Calculate the 2022 depreciation expense.
b. What is the equipment's book value at the end of 2022 after recording the 2022 depreciation expense?
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Correct Answer:
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Revised remaining useful ...View Answer
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