On 1 January 2022, XYZ Company purchased a machine for $50,000 with an estimated useful life of
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On 1 January 2022, XYZ Company purchased a machine for $50,000 with an estimated useful life of 5 years and no salvage value. The company uses the straight-line method of depreciation. On 31 December 2022, the company discovered that the estimated useful life of the machine should have been 4 years instead of 5 years.
Calculate the depreciation expense for the year ended 31 December 2022 and the carrying amount of the machine as at 31 December 2022.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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