A company purchased farm equipment on January 1, 2022, for $289,000. In 2022 and 2023, the company depreciated the asset on a straight-line basis with an estimated service life of five years and a $84,000 residual value. In 2024, due to changes in technology, the company revised the residual value to $39,000 but still plans to use the equipment for the full five years. What is the amount of depreciation that the company should record for the year 2024 on this equipment? Multiple Choice $17,000 O $48,200 $56,000 $50,000

A company purchased farm equipment on January 1, 2022, for $289,000. In 2022 and 2023, the company depreciated the asset on a straight-line basis with an estimated service life of five years and a $84,000 residual value. In 2024, due to changes in technology, the company revised the residual value to $39,000 but still plans to use the equipment for the full five years. What is the amount of depreciation that the company should record for the year 2024 on this equipment? Multiple Choice $17,000 O $48,200 $56,000 $50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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