Change in Accounting Estimate. Innotech Corporation had a piece of sophisticated manufacturing equipment purchased on January...
- Change in Accounting Estimate. Innotech Corporation had a piece of sophisticated manufacturing equipment purchased on January 1, 2017 at a cost of $3.5 million. Innotech originally anticipated rapid changes in technology that would limit the equipment’s life to 5 years, and expected that it would have no salvage value at that point in time.
During 2019, Innotech reassessed the expected useful life of the equipment, and now has a more optimistic view of its utility. The company now expects that the equipment will have a total useful life of 8 years (compared to the original estimate of 5) and that it will have a salvage value at the end of this 8-year period of $300,000.
Compute the revised amount of depreciation expense for 2019 and the remaining estimated life of the equipment.
Homework Answers
Add Answer to:
Change in Accounting Estimate.
Innotech Corporation had a piece of sophisticated
manufacturing equipment purchased on January...
On January 1, Year 1, Fukisan purchased a new piece of equipment for specialized-furniture manufacturing at...
On January 1, Year 1, Fukisan purchased a new piece of
equipment for specialized-furniture manufacturing at a cost of
$300,000, inclusive of shipping and installation. At the time of
purchase, the equipment had an estimated useful life of 15 years
and an expected salvage value of $10,000 at the end of the 15
years.
For future budgeting purposes, Eric Anderson, CFO of Fukisan
Inc. has asked you to perform the depreciation expense calculations
for Year 2, Year 3, and Year...
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was...
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ Could you please show working?
On July 1, 2019, Cullumber Company purchased new equipment for $80,000. Its estimated useful life was...
On July 1, 2019, Cullumber Company purchased new equipment for $80,000. Its estimated useful life was 5 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Calculate the revised annual depreciation
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was...
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was 5 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000...
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022. Accumulated Depreciation—Equipment $___
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was...
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12...
On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $__________________ Show your work
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was 5 years with a $8,000...
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
Change in Accounting Estimate: On 7/1/15 AU Co. bought a $50,000 piece of equipment. It depreciated...
Change in Accounting Estimate: On 7/1/15 AU Co. bought a $50,000 piece of equipment. It depreciated the equipment using the straight-line method assuming $5000 salvage value and a 9-year life. On 1/1/20 AU Co. decided the equipment had 6 more useful years and a $2000 salvage value. What is the depreciation entry for the year ending 12/31/2020? Journal entry:
Facts: You purchased a piece of equipment on January 1, 2019 for $53,000. It has a...
Facts: You purchased a piece of equipment on January 1, 2019 for $53,000. It has a $3,000 salvage value and a 5 year useful life. It’s life in units of output is 100,000 hours. Prepare the depreciation schedules for the entire useful life (e.g. You will show all the years for the asset) as follows: Straight line Sum of the year’s digits Units of production (use the following use: yr1: 18,000; yr2: 22,000; yr3: 28,000 yr4: 20,000; yr5: 12,000 200%...
On January 1, Year 1, Fukisan purchased a new piece of
equipment for specialized-furniture manufacturing at a cost of
$300,000, inclusive of shipping and installation. At the time of
purchase, the equipment had an estimated useful life of 15 years
and an expected salvage value of $10,000 at the end of the 15
years.
For future budgeting purposes, Eric Anderson, CFO of Fukisan
Inc. has asked you to perform the depreciation expense calculations
for Year 2, Year 3, and Year...
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
Most questions answered within 3 hours.
-
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 minutes ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 1 hour ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 1 hour ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 2 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 2 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 2 hours ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 2 hours ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 2 hours ago