What is the depreciation cost during the sixth year

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Reference no: EM131101052

The original investment for an asset was $10,000, and the asset was assumed to have a service life of 12 years with $2000 salvage value at the end of the service life. After the asset has been in use for 5 years, the remaining service life and final salvage value are reestimated at 10 years and $1000, respectively. Under these conditions, what is the depreciation cost during the sixth year of the total life if straight-line depreciation is used?

Reference no: EM131101052

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