221k views
0 votes
On January 1, 2022, the Blossom Company ledger shows Equipment $48,700 and Accumulated Depreciation $18,200. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $3,200. On this date, the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value. Compute the revised annual depreciation.

User Mathiasfc
by
8.1k points

1 Answer

5 votes

Answer:$13,650

Step-by-step explanation:

The net book value as at Jan 1, 2022 is $30,500 ($48700-$18200). This means it has to be written off in two years after deducting the residual value of $3200 = ($30500-$3200)/2

User Roflharrison
by
7.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories