Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor
Question:
Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $944,800 January 1, 2018 based on expectations of a ten year life. No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022 , management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it.
Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022? $
Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023?
Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated? $
Required 4: What is the Net Book Value of the reactor on June 30th, 2022? $
Required 5: What is the Net Book Value of the reactor on December 31st, 2022? $
Required 6: What is the Net Book Value of the reactor on June 30th, 2023? $