Solution-Calculate the amortization expense for each year

Calculate the amortization expense for each year

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Reference no: EM132735592

Question: At the beginning of 2011, the Beliveau Gold Company bought mining equipment costing $50 000. It was estimated then that the equipment had a useful life of five years and a residual value of $5 000. The straight-line method is considered the most appropriate method to use for amortization. The amortization will be recorded at the end of each year.

At the beginning of 2013, an adjustment is made in the estimation of the useful life. It is now estimated that the equipment will have a total useful life of seven years, not five.

At the beginning of 2015, the residual value is reduced to $2 500.

Calculate the Amortization Expense for each year from 2011 - 2017. Record your answer in the table provided.

Reference no: EM132735592

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Calculate the amortization expense for each year

Reference no: EM132735592

Reference no: EM132735592

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