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Question - A company purchases PP&E for $2,100. It estimates the PP&E will have a useful life of 8 years and produce 1,000 units. It also estimates the residual value of the PP&E will be $100. After recording depreciation for two years using the straight-line depreciation method, it changes its estimate of useful life from 8 to 10 years (that is, 8 years of life remain at the time the change in estimate of life is made). It also changes its estimate of residual value from $100 to $300. What Depreciation expense will it record in the 3rd year of the PP&E's life?
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