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Problem 1: Fellingham Corporation purchased equipment on January 1, 2019, for $208,000. The company estimated the equipment would have a useful life of 10 years with a $22,800 residual value. Fellingham uses the straight-line depreciation method. Early in 2021, Fellingham reassessed the equipment's condition and determined that its total useful life would be only six years in total and that it would have no salvage value. How much would Fellingham report as depreciation on this equipment for 2021?
Option 1: $28,493. Option 2: $42,740. Option 3: $59,740. Option 4: $37,040.
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