A large lathe was bought on January 1, 2013, for $ 7,000,000. It was expected to last for 12 years and have a residual value of $ 70,000. The company's policy for depreciation equipment is the straight-line method. During 2018 the remaining useful life of the lathe was revised to be four more years (for nine years in total.) Management also felt that all equipment should now be depreciated using the declining- balance method at 25% rate to better reflect the benefits obtained from the equipment. 

Required: Prepare the journal entries for depreciation for 2013, 2018

Answer rating: 100% (QA)

Journal Entry for Depreciation for 2013 Date December 31 2013 Depreciation Expense 583333... View the full answer