hard · Financial Accounting assets
On January 1, 2023, Obsidian Manufacturing purchased equipment for $120,000 with an estimated useful life of 10 years and a salvage value of $20,000. Obsidian uses straight-line depreciation. On January 1, 2026, Obsidian revised the total estimated life to 12 years (with no change to salvage value).
What is the depreciation expense for the year 2026?
- $8,333
- $7,778
- $8,889
- $10,000
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