changes in depreciation methods, estimates.

Project Description:

on january 1, 2003, sauder company purchased a building and machinery that have the following useful lives, salvage value, and costs.
building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value
machinery, 10-year estimated useful life, $500,000 cost, no salvage value
the building has been depreciated under the straight-line method through 2007. in 2008, the company decided to switch to the double-declining balance method of depreciation for the building. sauder also decided to change the total useful life of the machinery to 8 years, with a salvage value of $25,000 at the end of that time. the machinery is depreciated using the straight-line method.

(a) prepare the journal entry necessary to record the depreciation expense on the building in 2008.
(b) compute depreciation expense on the machinery for 2008.
Skills Required:
Project Stats:

Price Type: Negotiable

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