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4. Change in Depreciation

in Chapter 9 (Problem 4 of 5)

The following is available for a company’s machine on January 1, Year 3:

Cost 38,000 Method Straight-line
Salvage Value 6,000 Purchased January 1, Year 1
Accumulated Depreciation 8,000 Expected Life 8 years

On January 1, Year 3 a major overhaul was made on the machine costing $5,000 and the total estimated useful life was extended 4 years. Depreciation expense for year the year ending December 31, Year 3 is:

  1. $3,000
  2. $2,900
  3. $3,200
  4. $3,700
  5. $3,100
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The Rest Of The Practice Problems

Click Here to View All Chapter 9 Problems at Once View
1 The Effect of Amortization Easy
2 The Effect of Capital vs Revenue Expenditures Easy
3 Calculating Depreciation using DDB Moderate
4 Change in Depreciation
You are here. 		Moderate
5 Failure to Record Depreciation Moderate

Chapter 9 Videos

1 Acquisition Cost of Assets 13:23
2 Lump Sum Purchases 6:01
3 What is Depreciation? 11:23
4 Straight Line Depreciation 4:33
5 Double Declining Balance 13:58
6 Units of Production 3:43
7 Partial Year Depreciation 5:50
8 Capital vs. Revenue Expenditures 10:42