Depreciation Expense & Accumulated Depreciation HELP!!
At the beginning of 2008, Lehman Company acquired equipment costing $90,000. It was estimated that this equipment would have a useful life of 6 years and a residual value of $9,000 at the time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.
During 2010 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated residual value was not changed at that time. However, during the estimated 2013 the estimated residual Value was reduced to $5,000.
Instructions: Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table.
Year Depreciation Expense Accumulated Depreciation
2008
2009
2010
2011
2012
2013
2014
***2014 depreciation expense, $12,800
My Answers:
Year Depreciation Expense Accumulated Depreciation
2008 15,300 15,300
2009 15,300 30,600
2010 12,600 43,200
2011 12,600 55,200
2012 12,600 68,400
2013 12,600 81,000
2014 12,600 93,600
******2014 should have a Depreciation Expense of $12,800 and an Accumulated Depreciation of $90,000.
What am I doing wrong?
