Problem 10-04A (Video) Your answer is partially correct. Try again. At the beginning of 2018, Ayayai Company acquired equipment costing $187,600.

Problem 10-04A (Video)

Your answer is partially correct. Try again.  

At the beginning of 2018, Ayayai Company acquired equipment costing $187,600. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $18,760 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.

During 2020 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2023 the estimated salvage value was reduced to $5,000.

Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table.

Year

Depreciation

Expense

Accumulated

Depreciation

2018$

$

2019

2020

2021

2022

2023

2024