Item 4: Entity D bought equipment for $56,000 on January 1, 2024. It estimated the useful life to be 10 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2025, Entity D decides that it will use the equipment for a total of 7 years. Compute the revised depreciation expense for 2025 and make the entry to record depreciation expense. Show your work.
Item 4: Entity D bought equipment for $56,000 on January 1, 2024. It estimated the useful life to be 10 years with no salvage value, and the straight-line method of depreciation was used. On January 1, 2025, Entity D decides that it will use the equipment for a total of 7 years. Compute the revised depreciation expense for 2025 and make the entry to record depreciation expense. Show your work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Item 4: Entity D bought equipment for $56,000 on January 1, 2024. It estimated the
useful life to be 10 years with no salvage value, and the straight-line method of
depreciation was used. On January 1, 2025, Entity D decides that it will use the
equipment for a total of 7 years. Compute the revised depreciation expense for 2025
and make the entry to record depreciation expense. Show your work.
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