Question 1) Equipment cost of $120,000 has a estimated residual value of $10,000 and a estimated life of 5yrs or 12,000hrs. It is to be depreciated by the straight line method. What is the amount of depreciation for the first full year during which the equipment was used 3,000 hours?
Question 2) Equipment cost of $50,000 has a estimated residual value of $8,000 and a estimated life of 12yrs was depreciated by the straight line method for 5yrs. Due to obsolescence, it was determined that the useful life should be shortened by 5yrs and residule value canged to zero. The depreciation expense for the current and future years is?