Question

Supreme Fitness Club uses straight-line depreciation for a machine costing $20,850, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Supreme determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value.

  

(1)	Compute the machine’s book value at the end of its second year. (Omit the "$" sign in your response.)

  

Book value

$

   

(2)	Compute the amount of depreciation for each of the final three years given the revised estimates. (Do not round your intermediate calculations. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

  

	Amount of depreciation
Year 3	$
Year 4	$
Year 5	$

Answer 1