Question

Problem 9-4A

At the beginning of 2013, Mazzaro Company acquired equipment costing $127,600. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $12,760 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.

During 2015 (the third year of the equipment’s life), the company’s engineers reconsidered their expectations and estimated that the equipment’s useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2018, the estimated salvage value was reduced to $5,317.

Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. (Round answers to 0 decimal places, e.g. 5,275.)

Year		Depreciation Expense		Accumulated Depreciation
2013		$		$
2014
2015
2016
2017
2018
2019

Answer 1

Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. (Round answers to 0 decimal places, e.g. 5,275.)

Year		Depreciation Expense		Accumulated Depreciation
2013		(127600-12760/6) = 19140		$19140
2014		19140		38280
2015		(127600-38280-12760/5) = 15312		53592
2016		15312		68904
2017		15312		84216
2018		(127600-84216-5317)/2 = 19034		103250
2019		19033		122283