Question regarding revised annual depreciation


Neville Company bought machinery on January 1, 2010 at a cost of $400,000. The machinery had an estimated life of 8 years and salvage value of $20,000. In January 2013, Neville estimates that the machinery will have a life of only 4 more years and an $18,000 salvage value. Norton uses straight-line depreciation. Compute the revised annual depreciation.

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Accounting Basics: Question regarding revised annual depreciation
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