On January 1, 2016, Check Co

question 5

Essay

On January 1, 2016, Check Co. bought a machine for $15,000. Residual value was estimated to be $1,400 and a five- year life was used for straight-line depreciation. On January 1, 2018, it was estimated that the total life from acquisition date should have been six years and residual value should have been estimated at $600.
Required:
Compute depreciation expense for 2018.

---

Definitions:

Firm Offer

In contract law, an offer that is expressly made irrevocable for a specified period of time by the offeror.

Merchant

An individual or company involved in wholesale or retail trade, especially one dealing with goods, services, or commodities for profit.

Consideration

Consideration in legal terms refers to the value, which could be a benefit or a sacrifice, that parties exchange in a contractual agreement, essential for the contract's validity.

Hybrid Contract

An agreement that encompasses elements of both goods and services within the same transaction.