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Question - Tatura Ltd purchased equipment on 1 January 2017 at a cost of $78,000. The equipment was originally estimated to have a salvage value of $6,500 and an estimated life of 10 years. Depreciation has been recorded through 31 December 2020, using the straight-line method. On 1 January 2021, the estimated residual value was revised to $7,800 and the useful life was revised to a total of 8 years.
Calculate Tatura Ltd.'s Depreciation Expense for 2021.
Determine the revised annual depreciation expense for 2021 onwards.
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