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Financial Accounting

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Change in Estimate: SL Revised Estimated Useful Life and SV

FINACT-D@ADHW

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 7-year useful life. Perry used the Straight-Line (SL) depreciation method until 2020 when the company revised the estimated salvage value to $0 and the estimated useful life to 5 years.

What is the amount of Depreciation Expense that is recorded in 2020 if the straight line deprecation method continues to be used?