Pedro Company has $181,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $

Pedro Company has $181,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged. Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $ Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $ Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $

Name: Pedro Company has $181,000 of machinery being depreciated over 5 year
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Description: Pedro Company has $181,000 of machinery being depreciated over 5 years. There is no estimable residual value after that. Aftertaking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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