Reengineering Corporation operates a small repair facility for its products. At the beginning of 2009, the accounting records for the company showed the following balances for its only piece of equipment, purchased at the beginning of 2006: Equipment …………………. $135,000 Accumulated depreciation ……………. 45,000 During 2009, the following costs were incurred for repairs and maintenance on the equipment: Routine maintenance and repairs ………… $ 815 Major overhaul of the equipment that improved efficiency .. 32,000 The company uses the straight-line method, and it now estimates the equipment will last for a total of 12 years with $500 estimated salvage value. The company’s fiscal year ends on December 31. 1. How much depreciation did Reengineering Corporation record on the equipment at the end of 2008? 2. After the overhaul at the beginning of 2009, what is the remaining estimated life of the equipment? 3. What is the amount of depreciation expense the company will record for 2009?

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