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Assume the company uses straight-line depreciation for the equipment. At the beginning of the second year,...

Assume the company uses straight-line depreciation for the equipment. At the beginning of the second year, we determine that the equipment has only two more years of remaining useful life.

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Answer #1

✓At the beginning of the year two, we determine that equipment has only two more years.

✓ As per Straight line method , we have to depreciate the equipment over next two years.

✓Depreciation expense per annum for next two years = (Book value of equipment at begining of second year - Salvage value)/2.

Note:- As per Straight line method, we have to depreciate the equipment over Revised useful life of equipment.

*****Any doubts on above answer please comment me on comment box, thank you.

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