Question

Jack's Copy Shop bought equipment for $150,000 on January 1, 2013. Jack estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2014, Jack decides that the business will use the equipment for a total of 5 years. What is the revised depreciation expense for 2014?

Answer 1

What is the revised depreciation expense for 2014?

$25000

Step-by-step explanation:

Cost Yearly Dep NBV

2013 150000 3 50000 100000

2014 100000 4 25000 75000

2015 75000 4 25000 50000

2016 50000 4 25000 25000

2017 25000 4 25000 0