Test yourself on international financial reporting standards #3

Test yourself on international financial reporting standards #3

On January 1, 2006, the Holloran Corporation purchased a machine at a cost of $55,000. The machine was expected to have a service life of 10 years and no residual value. The straight-line depreciation method was used. In 2008 the estimate of residual value was revised from zero to $6,000. Depreciation for 2008 should be:
A) $3,800
B) $4,400
C) $4,750
D) $5,500

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