Question: I have a doubt in the last entry amount Show Attempt History Current Attempt in Progress Machinery purchased for $55,200 by Marigold Corp. on January



Show Attempt History Current Attempt in Progress Machinery purchased for $55,200 by Marigold Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $4,600 at the end of that time. Assume straight-line depreciation and that Marigold Corp. uses IFRS for financial statement purposes. Your answer is correct. Prepare the entry that is required to correct the prior years' depreciation, if any. (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.) Account Titles and Explanation No Entry No Entry Debit 0 Credit 0 Your answer is correct. D Prepare the entry to record depreciation for 2020. (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.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Machinery eTextbook and Media List of Accounts Debit 3720 Credit 3720 Your answer is correct. Repeat part (b) assuming Marigold Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $100 at the end of that time. (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. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Toxtbook and Media Debit 3772 Credit 3772 Your answer is partially correct. Repeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (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. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Machinery eTextbook and Media List of Accounts Debit 4366 Credit 4366
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