Exercise 8-13 Revising depreciation LO C2 Apex Fitness Club uses straight-line depreciation for a machine...
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Exercise 8-13 Revising depreciation LO C2
Apex Fitness Club uses straight-line depreciation for a machine costing $20,850, with an estimated four year life and a $2,050 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,600 salvage value. Required:1. Compute the machines book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates.
Required 1 Required 2 Compute the machine's book value at the end of its second year. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision Required 1 Required 2 Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Revised Depreciation (Years 3-5) Book value at point of revision Revised salvage value Remaining depreciable cost Years of life remaining Revised annual depreciation years (3- 5)
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