6. (5 min.)

Calculate the Book Value at the time of the revision:

$50,000 - $5,000

———————————————— = $4,500 annual depreciation expense

10 years

4 years have been depreciated: $4,500 x 4 = $18,000

Book Value at the time of the revision:

$50,000 - $18,000 = $32,000

Calculate the revised annual depreciation:

$32,000 - $6,000

————————————————— = $6,500 revised annual depreciation

4 years remaining

The Depreciation Expense for 2004 is $6,500.