Blossom Co. purchased equipment for $600,400 which was estimated to have a useful life of 10 years with a salvage value of $8,400 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2018, it is determined that the total estimated life should be 15 years with a salvage value of $4,600 at the end of that time.

(a)		Prepare the entry (if any) to correct the prior years’ depreciation.
(b)		Prepare the entry to record depreciation for 2018.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer rating: 100% (QA)

a To correct the prior years depreciation we need to adjust the accumulated depreciation account ... View the full answer