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Baxter Co purchased an asset for $100,000 on 1.1.X1. It had an estimated useful life of 5 years and it was depreciated using the straight line method. On 1.1.X3 Baxter Co revised the remaining estimated useful life to 8 years.
What is the carrying amount of the asset at 31.12.X3?
A $40,000
B $52,500
C $40,000
D $62,500Answer is B.
He is finding revalued depreciation by dividing 60000/8=7500. Why are we not doing 60000/6 as two years have passed from X1-X2.
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