Pronghorn Industries changed from the double-declining-balance to the straight-line method in 2021 on all its equipment. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2018, had an original cost of $1,740,800, with a $86,400 salvage value and an 8-year estimated useful life. Income before depreciation expense was $294,400 in 2020 and $320,000 in 2021. (a) Your answer is correct. Prepare the journal entry to record depreciation expense in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Pronghorn Industries changed from the double-declining-balance to the straight-line method in 2021 on all its equipment. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2018, had an original cost of $1,740,800, with a $86,400 salvage value and an 8-year estimated useful life. Income before depreciation expense was $294,400 in 2020 and $320,000 in 2021. (a) Your answer is correct. Prepare the journal entry to record depreciation expense in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Name: Pronghorn Industries changed from the double-declining-balance to the
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Description: Pronghorn Industries changed from the double-declining-balance to the straight-line method in 2021 on all its equipment. There wasno change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2018, had an original cos

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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