On January 1, 2011, Reyes Company Purchased a Computer System

question 237

Essay

On January 1, 2011, Reyes Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no residual value. At January 1, 2013, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2013 and 2014?

---

Definitions:

Critical Factor

An essential element or condition that significantly impacts the success or failure of a project, business, or system.

Partners' Capital Statement

A financial document showing the changes in the equity interest of each partner in a partnership over a specific period.

Additional Investment

Funds contributed by an investor or owner to increase the capital of a business or project.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.