Financial Accounting

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Change in Estimate: DDB to SL Method


Perry Engineering Company purchased a piece of equipment to be used in its operations for \$735,000 on January 1, 2017 with an estimated salvage value of \$35,000 and a 5-year useful life. The company uses the Double-Declining-Balance (DDB) method to record Depreciation Expense. In 2020, the company switched from the DDB method to the Straight-Line (SL) method.

What is the amount of Depreciation Expense that is recorded in 2020?