The Donut Stop acquired equipment for $23,000. The company uses straight-line depreciation and estimates a residual value of $3,400 and a four-year service life. At the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time, the company also changed the estimated residual value to $2,000 from the original estimate of $3,400.Required:Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6.Cost of the equipment:Less: accumulated depreciation (year 1 & 2):Book value, end of year 2:Less: new residual value:New depreciable cost:Remaining service life:Annual depreciation in years 3 to 6

$2,400

Explanation:

Cost of equipment = $23,000

Residual value = $3,400

Useful life = 4 year

Formula for Annual Depreciation will be:

Annual depreciation = (Cost price - Residual value)/Useful life

Hence,

= (23,000 - 3,400)/4

= 19,600/4

= $4,900

The Accumulated depreciation for year 1 and year 2 will be

= 4,900 x 2

= $9,800

Cost of equipment23,000

Less : Accumulated depreciation for year 1 and year 2(9,800)

Book value, end of year 213,200

Less : Residual value(2,000)

New depreciable cost11,200

Remaining service life4

Annual depreciation in year 3 to 6 (11,200/4)$2,400

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; institution based;