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Oriole Company bought equipment for $290000 on January 1, 2021. Oriole estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2022, Oriole decides that the business will use the equipment for a total of 6 years. What is the revised depreciation expense for 2022

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abiolataiwo2015

Answer:

$43,500

Explanation:

Calculation for What is the revised depreciation expense for 2022

2022 Revised depreciation expense=290,000/4 years

2022 Revised depreciation expense=72,500

2022 Revised depreciation expense=(290,000-72,500)/(6-1)

2022 Revised depreciation expense=217,500/5

2022 Revised depreciation expense=$43,500

Therefore the revised depreciation expense for 2022 is $43,500