On January 1, 2012, the Ewing Company ledger shows Equipment $36,000 and Accumulated

On January 1, 2012, the Ewing Company ledger shows Equipment $36,000 and Accumulated Depreciation $14,000. The depreciation resulted from using the straight line method with a useful life of 10 years and a salvage value of $2,000. On this date the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value.

Required:

Compute the revised annual depreciation.

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