Reference no: EM133074375

Question - Apex Fitness Club uses straight-line depreciation for a machine costing $28,500, with an estimated four-year life and a $2,050 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,600 salvage value.

Required -

1. Compute the machine's book value at the end of its second year.

2. Compute the amount of depreciation for each of the final three years given the revised estimates.