medium · Financial Accounting assets

A firm buys equipment for $50,000 with a 5-year life and $5,000 salvage value. After 2 years of using straight-line depreciation, the firm revises the total useful life to 8 years (with 6 years remaining).

What is the depreciation expense for Year 3?

  1. $5,625
  2. $4,500
  3. $5,333
  4. $9,000

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