Questions -
1. A company used straight-line depreciation for an item of equipment that cost $14,700, had a salvage value of $3,200, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,560 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life.
2. A machine originally had an estimated useful life of 11 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 15 years. At that point the remaining cost to be depreciated should be allocated over the remaining.
3. An asset's book value is $18,800 on June 30, Year 6. The asset is being depreciated at an annual rate of $3,800 on the straight-line method. Assuming the asset is sold on December 31, Year 7 for $15,800, the company should record.
4. Lomax Enterprises purchased a depreciable asset for $29,500 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,500, what will be the amount of accumulated depreciation on this asset on December 31, Year 4?