at December 31, 2023, Oriole Corporation is having its financial statements audited for the first time ever. The auditor has found e following items that might have an effect on previous years. C. Oriole purchased equipment on January 2, 2020, for $106,600. At that time, the equipment had an estimated useful life of 10 years, with a $8,200 residual value. The equipment is depreciated on a straight-line basis. On January 2, 2023, as a result of additional information, the company determined that the equipment had a total useful life of seven years with a $4,920 residual value. During 2023, Oriole changed from the double-declining-balance method for its building to the straight-line method because the company thinks the straight-line method now more closely follows the benefits received from using the assets. The current-year depreciation was calculated using the new method following straight-line depreciation. In case the following
at December 31, 2023, Oriole Corporation is having its financial statements audited for the first time ever. The auditor has found e following items that might have an effect on previous years. C. Oriole purchased equipment on January 2, 2020, for $106,600. At that time, the equipment had an estimated useful life of 10 years, with a $8,200 residual value. The equipment is depreciated on a straight-line basis. On January 2, 2023, as a result of additional information, the company determined that the equipment had a total useful life of seven years with a $4,920 residual value. During 2023, Oriole changed from the double-declining-balance method for its building to the straight-line method because the company thinks the straight-line method now more closely follows the benefits received from using the assets. The current-year depreciation was calculated using the new method following straight-line depreciation. In case the following
Chapter1: Financial Statements And Business Decisions
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