Recording Depreciation with a Change in Depreciation Method Pier Exports purchases equipment on January 1 at a
Fantastic news! We've Found the answer you've been seeking!
Question:
Recording Depreciation with a Change in Depreciation Method
Pier Exports purchases equipment on January 1 at a cost of $135,000. The company estimates that there will be no salvage value and that the equipment will have a useful life of 10 years. The company elects to use the double-declining-balance method for the first three years, after which the company will change to the straight-line method of depreciation for the equipment.
Required
a. Compute annual depreciation expense for Year 1 through Year 3.
b. Prepare the depreciation entry for the end of Year 4.
Note: Round your final answers to the nearest whole number.
a.
Year | Annual depreciation expense |
---|---|
Year 1 | Answer |
Year 2 | Answer |
Year 3 | Answer |
b.
Date | Account Name | Dr. | Cr. |
---|---|---|---|
Dec. 31, Year 4 | Answer | ||
Answer | |||
Related Book For
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann
Posted Date: