Refer to the situation described in BE 1114. Assume that 2022 depreciation was incorrectly recorded as $32,000.

Question:

Refer to the situation described in BE 11–14. Assume that 2022 depreciation was incorrectly recorded as $32,000. This error was discovered in 2024.

(1) Record the journal entry needed in 2024 to correct the error.
(2) What is depreciation on the building for 2024, assuming no change in estimate of useful life or residual value?

Data from in BE 11-14

At the beginning of 2022, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2024, the estimates of useful life and residual value were changed to 20 total years and $500,000, respectively. What is depreciation on the building for 2024?

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Intermediate Accounting

ISBN: 9781264134526

11th Edition

Authors: David Spiceland

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Question Posted: Jun 15, 2022 04:08 AM

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Refer to the situation described in BE 1114. Assume that 2022 depreciation was incorrectly recorded as $32,000.

Question:

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1 If a material error is discovered in an accounting period subsequent to the period in which the er...View the full answer

Intermediate Accounting

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