XYZ Company purchased a machine for $100,000 on January 1, 2022, with an estimated useful life of
Question:
XYZ Company purchased a machine for $100,000 on January 1, 2022, with an estimated useful life of 10 years and no residual value. The company uses straight-line depreciation. On December 31, 2022, the company determined that the machine's useful life was only eight years instead of the estimated ten years.
Calculate the following for XYZ Company:
a) The amount of depreciation expense recorded for the year ended December 31, 2022.
b) The carrying value of the machine on December 31, 2022.
c) The revised annual depreciation expense for the remaining useful life of the machine.
d) The total depreciation expense for the revised useful life of the machine.
e) The journal entry to record the adjustment for the year ended December 31, 2022.
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson