To measure what a misclassification would cost, Velbor's controller compares two computations: equipment costing 90,000 brought into use on 1 January 2022, expected to last 9 years (straight-line, no residual value), has its total life revised to 6 years at 1 January 2025. What is 2025 depreciation under each approach, and what is the gap?
- Acquisition cost
- 90,000
- Initial useful life
- 9
- Revised total useful life
- 6