Seved When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years...

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Seved When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years and an estimated salvage v

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Answer 1

Answer #1

Depreciation under straight line method = (Original cost - salvage value) / useful life

= (25740 - 3100 ) / 8

= 2830

Depreciation for 4 years = 2830 * 4 = 11320

The years has been revised to 6 years from 8 years at the end of 4th year.

WDV at the end of 4th year = 25740 - 11320

= 14420

There is no change in salvage value and remaining useful life is 2 years, so

Depreciation recalculated = ( 14420 - 3100) / 2

= 5660.

The depreciation expense for year 5 is $5660.00

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Answer 2

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Seved When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years...

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