Respuesta :
Answer:
$222,100
Explanation:
Cost = $837,300
Residual value = $84,000
Useful life = 9 years
Now,
Annual straight line depreciation = [tex]\frac{Cost-Residual Value}{Useful life}[/tex]
Annual straight line depreciation = [tex]\frac{837,300 - 84,000}{9}[/tex]
Annual straight line depreciation = [tex]\frac{753,300}{9}[/tex]
Annual straight line depreciation = $83,700
Accumulated depreciation for three years i.e., 2018, 2019 and 2020 would be:
Accumulated depreciation = 3 × $83,700
Accumulated depreciation = $251,100
Book value (at the end of year 2020) = Cost - Accumulated depreciation
Book value (at the end of year 2020) = $837,300 - $251,100
Book value (at the end of year 2020) = $586,200
Revised useful life = 5 years
No. years asset has been used = 3 years
Remaining useful life = 2 years
Revised salvage value = $142,000
Therefore, depreciation expense for the remaining three year would be:
Revised depreciation expense = [tex]\frac{Book value at the end of 2020 - Revised residual Value}{Remaining useful life}[/tex]
Revised depreciation expense = [tex]\frac{586,200 - 142,000}{2}[/tex]
Revised depreciation expense = [tex]\frac{444,200}{2}[/tex]
Revised depreciation expense = $222,100
