Machinery Purchased for $69000 by Tom Brady Can in 2016 was originally estimated to have a life of 8 Years witha salvage value of $4,000 at the end. Of that time. Deprec. has been entered for 5 Years on this basis. In 2021, it is determined that the total estimated life Should be Jo Years witha salvage value of $4,5.00 at the end of that time Assume straight-line Jeereciation Instructions Prepare the entry to Correct the prior Years' depreg if necessary
Machinery Purchased for $69000 by Tom Brady Can in 2016 was originally estimated to have a life of 8 Years witha salvage value of $4,000 at the end. Of that time. Deprec. has been entered for 5 Years on this basis. In 2021, it is determined that the total estimated life Should be Jo Years witha salvage value of $4,5.00 at the end of that time Assume straight-line Jeereciation Instructions Prepare the entry to Correct the prior Years' depreg if necessary
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E11.11 (L01,2) (De rec -Change in Estimate)
Machinery Purchased for $69000 by Tom
Brady Ca in 2016 was originally estimated to have a life
of 8 Years witha salvage value of $4,000 at the end
Of that time. Deerec. has been entered for 5 Years on
this basis. In Z0I it is determined that the total estimated
life Should be Jo Years witha salvage value of
$4,5 00 at the end of that time
Assume straightline depreciations
Instructins
Prepare the entry to Correct the prior Years depreg
if necessary
Prepare the entry to record deprec for 2027.
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