Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $979,200 January 1, 2018 based on expectations of a ten year life. No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022, management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022? $ 97920 Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023? $134640 Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated? $ 440640 ☑ Required 4: What is the Net Book Value of the reactor on June 30th, 2022? $ 538560 Required 5: What is the Net Book Value of the reactor on December 31st, 2022? $ 471240 Required 6: What is the Net Book Value of the reactor on June 30th, 2023? $ 403920

Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $979,200 January 1, 2018 based on expectations of a ten year life. No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022, management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022? $ 97920 Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023? $134640 Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated? $ 440640 ☑ Required 4: What is the Net Book Value of the reactor on June 30th, 2022? $ 538560 Required 5: What is the Net Book Value of the reactor on December 31st, 2022? $ 471240 Required 6: What is the Net Book Value of the reactor on June 30th, 2023? $ 403920

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...

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Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $912,800 January 1, 2018 based on expectations of a ten year life. No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022 , management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022? $ Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023? $ Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated? $ Required 4: What is the Net Book Value of the reactor on June 30th, 2022? $ Required 5: What is the Net Book Value of the reactor on December 31st, 2022? $ Required 6: What is the Net…
Holt Developments Ltd. put an asset in service on January 1, 2021. Its cost was $432,000, its predicted service life was six years, and its expected residual value was $43,200. The company decided to use double-declining-balance depreciation. After consulting with the company’s auditors, management decided to change to straight-line depreciation in 2023, without changing either the original service life or residual value.Required:a. What is depreciation expense for 2023? b. Calculate the effect of this change on retained earnings.
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Universal Semiconductors switched from the double-declining-balance depreciation method to straight-line depreciation in 2024. • The change affects its precision equipment that was purchased at the beginning of 2022 at a cost of $55 million. • The machinery has an expected useful life of ten years and an estimated residual value of $8 million. Required: Prepare the appropriate entry to record depreciation in 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 to be entered as 5.50). View transaction list Journal entry worksheet 1 Record the depreciation of precision equipment costing $55 million with an expected useful life of ten years and an estimated residual value of $8 million in 2024. Note: Enter debits before credits. Date 2024 Record entry General Journal Clear entry Debit Credit View general…
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