Coronado's quik shop bought machinery for $9 on january 1, 2017. coronado 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, 2018, coronado decides that the business will use the machinery for a total of 6 years. what is the revised depreciation expense for 2018?

Revised depreciation expense for 2018 = $14,400

Explanation:

Cost of machinery = $90,000

Salvage value = $0

Expected life = 5 years

Date of purchase of machinery = 1 January, 2017

Depreciation for the year 2017 = ($90,000 - $0)/5 = $18,000 per year under straight line method.

Book value at end of year 1 = $90,000 - $18,000 = $72,000

Now on 1 Jan 2018 company decides to use the machinery for total of 6 years

That is time period left = 6 years - Already used 1 year = 5 years

Depreciation = $72,000/5 years = $14,400 per year as life from now is 5 years for which depreciation will be as follows.

Note: No reverse adjustment is possible in previous year financial statements.

Revised depreciation expense for 2018 = $14,400

staple goods and impulse goods are examples of convenience products which consumers usually  buy. these products can be bought almost everywhere and are readily available for purchase. usually, the quality and price of the product are not considered. examples of staple goods are sugar and bread, while impulse goods examples are chocolates and magazine.