Answer: $162,000
Explanation:
The depreciation expense for the first 3 years up till 2021 is;
= (Cost - Salvage value)/Useful life
= ( 579,000 - 57,000) / 9
= $58,000
In 2021, the Net book value was;
= 579,000 - ( 58,000 * 3)
= 579,000 - 174,000
= $405,000
Useful life has been changed to 5 years. 3 years have already elapsed left with 2.
New salvage value is $81,000.
= (NBV - Salvage Value) / Useful life
= (405,000 - 81,000) / 2
= $162,000
