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.  Prepare the journal entry to record depreciation on December 31, 2019, Prepare the journal entry to record depreciation on December 31, 2020, Compute the revised annual depreciation on December 31, 2022. Prepare the journal entry to record depreciation on December 31, 2022. Compute the balance in Accumulated Depreciation—Equipment for this equipment after depreciation expense has been recorded on December 31, 2022.

Answer rating: 100% (QA)

No Date Account Debit Credit A 12312019 depreciation expense 6700 Accumul... View the full answer