Vaughn company purchased a computer for $9,200 on january 1, 2019. straight-line depreciation is used, based on a 5-year life and a $1,150 salvage value. on january 1, 2021, the estimates are revised. vaughn now feels the computer will be used until december 31, 2022, when it can be sold for $575.

required:
compute the 2021 depreciation (round answer to decimal 2)

Depreciation on 2021 is $2,702.50

Explanation:

First, let's compute depreciation expense from January 1, 2019 to December 31, 2020 using the original cost and salvage value.

STRAIGHT LINE METHOD FORMULA :

( Cost of an asset - Salvage value) / life of an asset

($9,200 - $1,150) - 5 years

= $1,610 (annual depreciation) x 2 years (January 1 2019 to December 31, 2020)

= $3,220

Second, Compute the carrying amount on January 1, 2021. Deduct accumulated depreciation from January 01, 2019 to December 31, 2020 from the cost of the computer.

$9,200 - $3,220 = $5,980

FINALLY, depreciate using the new remaining life of an asset and new salvage value.

New life remaining = 2 years

New salvage value = $575

($5,980 - $575) / 2 years = $2,702.50 (answer)

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answer the law of increasing costs;