1) On January 1, 2015, Jamacha Company purchased some equipment for $15,000

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1) On January 1, 2015, Jamacha Company purchased some equipment for $15,000. The estimated salvage value and useful life are $3,000 and 4 years, respectively. On January 1, 2017, they company determines that the asset's remaining useful life is 3 year what is the revised depreciation expense for 2017 if the company uses the straight-line method?

$2, 250

$4,000

$2, 500

$2,000

2) Able Towing Company purchased a tow truck for $60,000 on January 1, 2012. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $12,000. On December 31, 2014, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2014) and the salvage value to $2,000. What was the depreciation expense for 2014?

$6,000.

$4,800.

$15,000.

$12,100.