Change in the estimated residual value

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Reference no: EM131296093

When originally purchased, a vehicle had an estimated useful life of 10 years. The vehicle cost $27,000 and its estimated residual value is $4,000. After 3 years of straight-line depreciation, the asset’s total estimated useful life was revised from 10 years to 6 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is:

$3,558

$3,833

$1,170

$5,367

Reference no: EM131296093

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