Example Computation of Revised Depreciation Rates

Cost $7,000

(Depreciation Already Taken) (2,000)

(Residual Value) (1,000)

Remaining Depreciable Amount $4,000

Divide by remaining useful life 2 yrs.

Dec. 31 Dep. Exp., Delivery Truck 2,000

Accum. Dep., Delivery Truck 2,000

To record expense for the year

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