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Question - At the beginning of 2020, Sheffield Company acquired equipment costing $175,600. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $17,560 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.
During 2022 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2025 the estimated salvage value was reduced to $5,000.
Indicate how much depreciation expense should be recorded each year for this equipment?
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