Meca Concrete Purchased a Mixer on January 1, 2011, at a Cost

question 88

Essay

Meca Concrete purchased a mixer on January 1, 2011, at a cost of $45,000. Straight-line depreciation for 2011 and 2012 was based on an estimated eight-year life and $3,000 estimated residual value. In 2013, Meca revised its estimate and now believes the mixer will have a total service life of only six years, and that the residual value will be only $2,000.
Required:
Compute depreciation for 2013 and 2014.

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Definitions:

Twisted Wire Pair

A type of cable where two conductors are twisted together to reduce electromagnetic interference.

Bare Copper Wire

A type of electrical wire made of pure copper without any insulation or protective sheathing, commonly used for grounding purposes.

J1939 Data Bus

A communication protocol based on CAN (Controller Area Network) used for electronic control units (ECUs) primarily in heavy-duty vehicles.

Stub Extending

Refers to adding an extension to a stub, which is a short length of pipe or tube used in piping systems or in programming to serve as a placeholder for future code.