Explain the estimated useful life


Chattanooga Company purchased a depreciable asset for $80,000 on January 1, 2012.The estimated salvage value is $20,000, and the estimated useful life is 5 years.The straight-line method is used for depreciation.On January 1, 2014,the company made a capital expenditure of $16,000 for an addition to the asset. What is depreciation expense for 2014?

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Accounting Basics: Explain the estimated useful life
Reference No:- TGS0700998

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