Gonzales Company purchased a machine on January 1, year 1, for $ 600,000 On the date of acquisition, the machine had an estimated useful life of six years with no salvage value The machine was being depreciated on a straight line basis On January 1, year 4, Gonzales determined that the machine had ...

Choice c is correct The accounting change is a change in accounting estimate w ...

Gonzales Company purchased a machine on January 1, year 1, for $ 600,000. On the date of

Question:

Gonzales Company purchased a machine on January 1, year 1, for $ 600,000. On the date of acquisition, the machine had an estimated useful life of six years with no . The machine was being depreciated on a straight-line basis. On January 1, year 4, Gonzales determined that the machine had an estimated life of eight years from the date of acquisition. An accounting change was made in year 4. What is the amount of the depreciation expense that should be recorded for the year ended year 4?
a. $ 75,000
b. $ 100,000
c. $ 60,000
d. $ 0
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...