Essay
On January 1, 2016, Chipmunk Company purchased new equipment for $440,000. The equipment had an estimated $40,000 salvage value at the end of its estimated ten-year useful life. Straight-line depreciation has been recorded. Before adjusting the accounts for 2022, Chipmunk extends the useful life of the equipment by four years and decreases the salvage value to $20,000.
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?
Correct Answer:
Verified
Correct Answer:
Verified
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