Oriole Company purchased a depreciable asset for $611000 on January 1, 2018. The estimated salvage value is $53000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2021, Oriole changed its estimates to a total useful life of 5 years with a salvage value of $95000. What is 2021 depreciation expense

Annual depreciation= $165,000

Explanation:

First, we need to calculate the accumulated depreciation at 2021:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (611,000 - 53,000) / 9

Annual depreciation= $62,000

Accumulated depreciation= 62,000*3= $186,000

Now, the depreciation for 2021:

Depreciable price= (611,000 - 186,000) - 95,000= $330,000

Remaining life= 5 - 3= 2 years

Annual depreciation= 330,000 / 2

Annual depreciation= $165,000

answer; complain or request hazard correction from your employer;

answer; burned it;