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    Depreciation using the revised amounts and straight line

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    Computer equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation.
    $11,200
    $22,400
    $10,600
    $13,600

    An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. Calculate this year's depreciation using the revised amounts and straight line method.
    $22,800
    $11,400
    $23,300
    $24,000

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    Solution Preview

    Computer equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation.

    Depreciation= (Cost-Residual value)/Useful ...

    Solution Summary

    This provides the steps to calculate the depreciation using the revised amounts and straight line method

    $2.19

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