Eckland Manufacturing Co. purchased equipment on January 1, 2011, at a cost of $90,000. Straight-line depreciation for 2011 and 2012 was based on an estimated eight-year life and $2,000 estimated residual value. In 2013, Eckland revised its estimate and now believes the equipment will have a total service life of only six years, while the residual value remains the same.
Required: Compute depreciation for 2013 and 2014.
Seybert Systems accounts for its investment in Wang Engineering as available for sale. Seybert's balance in accumulated other comprehensive income with respect to the Wang investment is a credit balance of $20,000, and Seybert reports the investment at $100,000 on its balance sheet. Seybert purchased the Wang investment for (ignore taxes):