Cullumber Company bought equipment for $150000 on January 1, 2021. Cullumber estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2022, Cullumber decides that the business will use the equipment for a total of 6 years. What is the revised depreciation expense for 2022? a. $30000
b. $12000
c. $24000
d. $20000

Annual depreciation 2022= $24,000

Explanation:

Giving the following information:

Purchase price= $150,000

Useful life= 5 years

Salvage value= $0

First, we need to calculate the annual depreciation for 2021:

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

Annual depreciation= (150,000 - 0) / 5

Annual depreciation= $30,000

Now, the revised depreciation:

Annual depreciation= (150,000 - 30,000) / 5

Annual depreciation= $24,000

We divide by 5 years because one year has passed.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; sales of books;