The Elmo Company purchased equipment on January 1, Year 1 at a cost of $26,000. The equipment was estimated to last for 8 years and have a salvage value of $2,000. At the end of Year 5, it was determined that the total useful life of the equipment was really 11 years, and the salvage value was expected to remain unchanged. The firm uses the straight-line method of depreciation. a. What amount of depreciation was recorded for the equipment in year 1?
b. What was the amount of the depreciation expense recorded in year 6?

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position