Change in Estimated Useful Life
Response to the following problem:
On January 1, 2007, Landon Excavation Company purchased a new bulldozer for $120,000. The equipment had an estimated useful life of 10 years and an estimated residual value of $10,000. On January 1, 2009, Landon determined that the bulldozer would have a total useful life of only 8 years instead of 10 years with no change in residual value. Landon uses straight-line depreciation.
Compute depreciation expense on this bulldozer for 2007, 2008, and 2009.