How much depreciation expense will brush report

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Problem 1: On January 1, 20X3, Brush Corp. acquired equipment at a cost of $500,000. The equipment had previously been depreciated on a straight-line basis over 10 years with a $100,000 residual value. In early 20X6, the company determined that the equipment will likely only last a total of eight years, and the estimated residual value will be $20,000 at that time. The company's fiscal year end is December 31. How much depreciation expense will Brush report in its 20X6 fiscal year-end financial statements?

Reference no: EM132794468

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