1. 2. Concord purchased equipment on January 2, 2022, for $86,600. At that time, the equipment...

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1. 2. Concord purchased equipment on January 2, 2022, for $86,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2025, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,000 salvage value. During 2025, Concord changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $320,000. It had a useful life of 10 years and a salvage value of $32,000. The following computations present depreciation on both bases for 2023 and 2024. 3. (a) 2024 2023 Straight-line $28,800 $28,800 Declining-balance 51,200 64,000 Concord purchased a machine on July 1, 2023, at a cost of $140,000. The machine has a salvage value of $14,000 and a useful life of 8 years. Concord's bookkeeper recorded straight-line depreciation in 2023 and 2024 but failed to consider the salvage value. Your answer is correct. Prepare the journal entries to record depreciation expense for 2025 and correct any errors made to date related to the information provided. (Ignore taxes.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Depreciation Expense Accumulated Depreciation-Equipment Debit 14750 2. Depreciation Expense 21600 Accumulated Depreciation-Buildings 3. Depreciation Expense Accumulated Depreciation-Machinery (To record current year depreciation.) Accumulated Depreciation-Machinery Retained Earnings (To correct prior year depreciation.) 15750 2625 Credit 14750 21600 15750 2625 1. 2. Concord purchased equipment on January 2, 2022, for $86,600. At that time, the equipment had an estimated useful life of 10 years with a $4,600 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2025, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $3,000 salvage value. During 2025, Concord changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $320,000. It had a useful life of 10 years and a salvage value of $32,000. The following computations present depreciation on both bases for 2023 and 2024. 3. (a) 2024 2023 Straight-line $28,800 $28,800 Declining-balance 51,200 64,000 Concord purchased a machine on July 1, 2023, at a cost of $140,000. The machine has a salvage value of $14,000 and a useful life of 8 years. Concord's bookkeeper recorded straight-line depreciation in 2023 and 2024 but failed to consider the salvage value. Your answer is correct. Prepare the journal entries to record depreciation expense for 2025 and correct any errors made to date related to the information provided. (Ignore taxes.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Depreciation Expense Accumulated Depreciation-Equipment Debit 14750 2. Depreciation Expense 21600 Accumulated Depreciation-Buildings 3. Depreciation Expense Accumulated Depreciation-Machinery (To record current year depreciation.) Accumulated Depreciation-Machinery Retained Earnings (To correct prior year depreciation.) 15750 2625 Credit 14750 21600 15750 2625