Company uses the straight line depreciation method


On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 10 years and a residual value of $10,000. On January 1, 2005, ABC Company decided the life of the equipment should be revised from 10 to 15 years.Calculate the depreciation expense recorded on the equipment for 2005 assuming ABC Company uses the straight line depreciation method.

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Accounting Basics: Company uses the straight line depreciation method
Reference No:- TGS0704229

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