Annual depreciation = (72000-4800)/8 = $8400
Net book value at the end of 2020 = $72000 -8400*5 = $30000
Depreciation for 2021 = (30000-5400)/5 = $4920
Date | Accounts | Debit | Credit |
1 | No entry | ||
No entry | |||
2021 | Depreciatio expense | $4920 | |
Accumulated depreciation - Machine | $4920 | ||
Machinery purchased for $72,000 by Oriole Co. in 2016 was originally estimated to have a life...
Machinery purchased for $71,400 by Waterway Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,760 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,355 at the end of that time. Assume straight-line depreciation. Prepare the entry to correct the prior years' depreciation, if...
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