Reference no: EM132914230

At the beginning of 2014, Sarofim Company acquired equipment costing $150,400. It was estimated that this equipment would have a useful life of 6 years and a residual value of $15,040 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.

• During 2016 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated residual value was not changed at that time. However, during 2019 the estimated residual value was reduced to $7,520.

Problem 1: Indicate how much depreciation expense should be recorded each year for this equipment