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Problem:
ABC Corp. has been depreciating its production equipment on straight-line basis over 10 years, taking a full year's depreciation in the year of acquisition and assuming no residual value at the end of the equipment's life. The company had invested $2,000,000 in the equipment at the beginning of 2012. At the beginning of 2014, the company decided to adjust the equipment's total useful life from 10 years up to 12 years, but with an estimated residual value of amounting to 10% of the equipment's original cost, rather than zero.
Required:
Determine the amount of depreciation expense to be shown for 2013, 2014 and 2015?
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