Current Attempt in Progress

On July $1,2022,$ Cullumber Company purchased new equipment for $$102,400.$ Its esfimated useful life was $7$ years with a $$12,800$ salvage value. On January $1,2025,$ the company estimated that the equipment's remaining useful life was $10$ years, with a revised salvage value of $$6,400.$

$($a$)$

Your answer is correct.

Prepare the journal entry to record depreciation on December $31,2022.($List debit entry before credit entry. 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 $O$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Depreciation Expense

$6,400$

Accumulated Depreciation$-$Equipment

eTextbook and Media

List of Accounts

Attempts: unlimited

$($b$)$

Your answer is correct.

Prepare the journal entry to record depreciation on December $31,2023.($List debit entry before credit entry. 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.$)$

Account Titles and Explanation

Debit

Credit

Depreciation Expense

$12,800$

Accumulated Depr$$ciation$-$Equipment

$12,800$

eTextbook and Media

List of Accounts

Attempts: unlimited

$($c$)$

Your answer is incorrect.

Compute the revised annual depreciation on December $31,2025.$

Revised annual depreciation