Brief Exercise 10-08
On January 1, 2020, the Monty Company ledger shows Equipment $56,000 and Accumulated Depreciation-Equipment $10,600. The depreciation resulted from using the straight-line method with a useful life of 11 years and salvage value of $2,500. On this date, the company concludes that the equipment has a remaining useful life of only 5 years with the same salvage value.
Compute the revised annual depreciation.
Revised annual depreciation $