MLJ Manufacturing has prepared the following depreciation schedule:

Straight-line depreciation schedule of snow blowers

Annual depreciation Book value
$85,000
Year 1 $21,250 63,750
Year 2 21,250 42,500
Year 3 21,250 21,250
Year 4 21,250 0

Suppose at the beginning of year 3, MLJ Manufacturing no longer believes the snow blowers will last 4 years, but instead decides the snow blowers will last 6 total years. Assume the residual value of the snow blowers is $0.
Required:
(1 ) What is the new depreciation expense for Year 3 and Year 4?
(2 ) What is the new book value after Year 4 records depreciation expense?
(3 ) What is the accumulated depreciation amount after Year 6 records depreciation expense?

(1 ) $42,500 left to depreciate / 4 years left = $10,625
(2 ) $42,500 book value at the beginning of Year 3 - $10,625 depreciation expense for Year 3 - $10,625 depreciation expense for Year 4 = $21,250
(3 ) $85,000