On Jan. 1, 2014, Westerfeld Company placed into service a machine that had an acquisition cost of $60,000, a salvage value of $6,000, and an estimated useful life of 5 years. On Jan. 1, 2016, Westerfeld revised the estimated salvage value of the machine to $9,000. How much annual depreciation expense should Westerfield recognize for 2016, using straight-line depreciation

Annual depreciation= $9,800

Explanation:

First, we need to calculate the depreciation expense and accumulated depreciation until 2016:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (60,000 - 6,000) / 5

Annual depreciation= $10,800

Accumulated depreciation= 10,800*2= $21,600

Now, we determine the depreciable value and the revised depreciation expense:

Depreciable value= 60,000 - 21,600= 38,400

Annual depreciation= (38,400 - 9,000) / 3

Annual depreciation= $9,800

answer/// there is an inverse relationship between price and quantity demanded;