Equipment was purchased at the beginning of 2022 for $850,00…
Equipment was purchased at the beginning of 2022 for $850,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through the end of 2024. At the beginning of 2025, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $62,500. The amount of depreciation expense for 2025, reflecting these changes in estimates, is: