At the beginning of 2018, Sheffield Company acquired equipment
costing $175,600. It was estimated that this equipment would have a
useful life of 6 years and a salvage value of $17,560 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 2020 (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 2023 the estimated salvage value was
reduced to $5,000.
Indicate how much depreciation expense should be recorded each year
for this equipment, by completing the following table.
Depreiciation expense | |
2018 | (175600-17560/6) = 26340 |
2019 | 26340 |
2020 | (175600-52680-17560)/5 = 21072 |
2021 | 21072 |
2022 | 21072 |
2023 | (175600-52680-63216-5000)/2 = 27352 |
2024 | 27352 |
At the beginning of 2018, Sheffield Company acquired equipment costing $175,600. It was estimated that this...
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