Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. due to obsolescence, it was determined that the remaining useful life should be shortened by 3 years and the residual value changed to zero. the depreciation expense for the current and future years is:

Straight-line Depreciation = (160,000 - 40,000)/15 = 8,000

4 Years of Depreciation = 8,000 * 4 = 32,000

Current Value = 160,000 - 32,000 = 128,000

Updated residual value = 0

Depreciation Over Remaining 8 years = 128,000

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abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2022-06-29T11:56:52+02:00

The depreciation expense for the current and future years is: $16,000.

Depreciation expenses

Using this formula

Depreciation expense=[(Equipment cost-Estimated residual value)/Estimated life]× Number of years

Let plug in the formula

Depreciation expense =[ (160,000 - 40,000)/15]×2

Depreciation expense = 8,000×2 years

Depreciation expense=$16,000

Therefore the depreciation expense for the current and future years is: $16,000.

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