Kauri Ltd Purchased Equipment on 1 January, 2018, at a Cost

Short Answer

Kauri Ltd purchased equipment on 1 January, 2018, at a cost of $75,000. The equipment was originally estimated to have a residual value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through 31 December, 2020, using the straight-line method. On 1 January, 2021, the estimated salvage value was revised to $6,000 and the useful life was revised to a further 8 years.
Instructions: Determine the depreciation expense for 2021