CALCULATOR MESSAGE MY INSTRUCTOR | | FULL SCREEN N PRINTERVERSIONI Brief Exercis

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CALCULATOR MESSAGE MY INSTRUCTOR | | FULL SCREEN N PRINTERVERSIONI Brief Exercise 11-7 Holt Company purchased a computer for $9,120 on January 1, 2013. Straight-line depreciation is used, based on a 7-year life and a $1,140 salvage used until December 31, 2016, when it can be sold for $570. value. In 2015, the estimates are revised. Holt now feels the computer will be Compute the 2015 depreciation. (Round answer to 0 decimal places, e-g. 45,892.) Depreciation expense, 2015 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 4 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Depreciation per year=(Cost-Salvage value)/USeful life

=(9120-1140)/7=$1140/year

Hence book value as on beginning of 2015=9120-(1140*2)=$6840

Hence revised depreciation expense=(6840-570)/2

=$3135

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