QS 8-5 Computing revised depreciation LO C2 On January 2, 2017, the Matthews Band acquires sound equipment for concert performances at a cost of $65,800. The band estimates it will use this equipment for four years. It estimates that after four years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years

depreciation expense per year (for years 2 and 3) = $23,925

Explanation:

depreciable value = $65,800 - $2,000 = $63,800

depreciation expense per year = $63,800 / 4 = $15,950

book value after 1 year = $65,800 - $15,950 = $49,850

new depreciable value = $49,850 - $2,000 = $47,850

depreciation expense per year = $47,850 / 2 years = $23,925

The Hox genes control how body parts are shaped and arranged. Genes are sections of DNA that code for a particular protein; they give the organism its visible traits. Altering the nucleotide sequence in this section of DNA alters protein synthesis. This change causes a completely different body part to grow.