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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
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Strayer University
Jan-2007 - Present
How would I go about solving this problem for accounting? I don't know what to do with the new residual value, how does it change the answer?
This is the problem:
On Jan 1st, 2006, a company purchased a fixed asset for $40,034, with a residual value of $4,338, and an estimated life of 5 years.
 At the end of 2008, the company believes the asset will have a total useful life of 7 years from the date of purchase and a residual value of $3,221.
What will be the amount of depreciation expense for 2009?
The company uses straight line depreciation.
Round your answer to whole dollars.
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