Answered

On January 1, 2019, Santo Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no salvage value. At January 1, 2021, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2021 and 2022

Answer :

Parrain

The amount of depreciation for both 2021 and 2022 based on the information given is $9,150

First find the accumulated depreciation for 2019 and 2020.

= Cost of system / Useful life x 2 years

= 30,500 / 5 x 2

= $12,200

The amount left to be depreciated is therefore:

= Cost - Accumulated depreciation

= 30,500 - 12,200

= $18,300

The depreciation for the next two years will be:

= Amount to be depreciated / Useful life

= 18,300 / 2

= $9,150

In conclusion, both 2021 and 2022 will see a depreciation of $9,150.

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