Swift Corporation purchased a depreciable asset for $1,170,000 on January 1, 2018. The estimated salvage value is $90,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2021, Swift changed its estimates to a total remaining useful life of 8 years with a salvage value of $150,000.
What is 2021 depreciation expense?
A) $ 82,500
B) $120,000
C) $150,000
D) $180,000

Question

Quizplus · Accepted Answer

Annual depreciation = _($_1,170_{,000 - $}₉_{0,000) / 9 = $}₁₂_0,000 11ee7640_e1ca_e96f_90da_5f7091026907_TBCB1007_00 Revised depreciation for Years 4 - 11: $660,000 / 8 = $82,500 per year

Swift Corporation Purchased a Depreciable Asset for $1,170,000 on January