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An asset was purchased for $55,000 and originally estimated to have a useful life of 10 years
with a residual value of $3,800, After 2 years of straight-line depreciation, it was determined that
the remaining useful life of the asset was only 2 years with a residual value of $1,520. a.
Determine the amount of the annual depreciation for the first 2 years. b. Determine the book
value at the end of Year 2 . c. Determine the depreciation expense for each of the remaining
years after revision.

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  • 1. An asset was purchased for $55,000 and originally estimated to have a useful life of 10 years with a residual value of $3,800, After 2 years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,520. a. Determine the amount of the annual depreciation for the first 2 years. b. Determine the book value at the end of Year 2 . c. Determine the depreciation expense for each of the remaining years after revision.