A Company Purchased an Asset on January 1,2012,for $10,000

Essay

A company purchased an asset on January 1,2012,for $10,000.The asset was expected to
have a ten-year life and a $1,000 salvage value.The company uses the straight-line method of
depreciation.On January 1,2014,the company made a major repair to the asset of $5,000,
extending its life.The asset is expected to last ten years from January 1,2014.
Calculate the amount of depreciation for 2014.