partial year depreciation question
I missed a day of school and can't figure out how to do this question
On April 3,2011,Finnbar equipment purchased a machine for $178 000. It was assumed that the machine would have a five-year life and a $38000 trade-in value. Early in January of 2014, it was determined that the machine would have a seven-year useful life and the trade-in value would be $20000. Finnbar uses the straight-line mthod to the nearest month for calculating depreciation.
Record depreciation at December 31, 2014, finnbar's year-end. Round to the nearest whole dollar
can you help me figure out how to do this?
Comment on Just Looking's post
is this what I'm supposed to do? Find the depreciation for 2011, 178000-38000/5= 28000 then multiply by 9/12 to get 21000 for the depreciation for 2011 and then use 28000 for 2012 an 2013? The last part of revising the depreciation I can't figure out
Comment on Just Looking's post
k so do I take the 77,000 and subtract it from the 178,000 to get $101,000 left to depreciate? If so I thought then I was supposed to take $101,000-$20,000/4? Because 20,000 is the new residual value and 3 years have been depreciated already
Comment on Just Looking's post
So it would be 101,000-20,000/ 4.25 to get the depreciation at December 31,2014 to be $19058.82?
Comment on Just Looking's post
Okay... thank you so much for your help! :)