Machinery purchased for $50,000 by tom brady co. in 2010 was originally estimated to have a life of 10 years with a salvage value of $5,000 at the end of that time. depreciation has been entered for 6 years on this basis. in 2016, it is determined that the total estimated life should be 12 years with a salvage value of $2,500 at the end of that time. assume straight-line depreciation. determine the depreciation expense for 2016.

$3,417

Explanation:

Annual depreciation:

= (Cost of machinery - Salvage value) ÷ Usable life

= ($50,000 - $5,000) ÷ 10 years

= $4,500 per year

Net book value at the beginning of 2016:

= Cost of machinery - (Annual depreciation × basis years)

= $50,000 - ($4,500 × 6)

= $23,000

Depreciation expense for 2016:

= (Net book value at the beginning of 2016 - salvage value at the end of that time) ÷ 6 years

= ($23,000 - $2,500) ÷ 6

= $3,417

answer; im, thinking it should be (7yrs)///plz check first.good luck

answer; /// the above statement is (true);