Homework Answers
| Cost of equipment | $ 600,000 |
| Less: Salvage value | $ (40,000) |
| Depreciable value | $ 560,000 |
| Life of assets | 5 Years |
| Depreciation for 2019 & 2020 ($560,000/5*2) | $ 224,000 |
| Book value at beginning of 2021 ($600,000-$224,000) | $ 376,000 |
| Less: Revised salvage value | $ (8,000) |
| Revised depreciable value ($376,000-$8,000) | $ 368,000 |
| Revised life of equipment | 6 Years |
| Depreciation for 2021 ($368,000/6) | $ 61,333 |
Answer is A. $61,333
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