Question 4: On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated at that time this equipment would have a useful life of eight years and a residual value of $ 3,000. The straight line method of depreciation is used by the company for the equipment, and its year end is December 31. St the beginning of 2022 (the beginning of the third year of the equipment's life), the company's engineers reconsidered their expectations. They estimated that the equipment's useful life would more likely be six years in total, instead of the previously estimated eight years. Required: 1. Calculate the equipment's accumulated depreciation and carrying amount at the beginning of 2022 immediately before the change in useful life. 2. Calculate the depreciation expense per year after the change in useful life.

Question 4: On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated at that time this equipment would have a useful life of eight years and a residual value of $ 3,000. The straight line method of depreciation is used by the company for the equipment, and its year end is December 31. St the beginning of 2022 (the beginning of the third year of the equipment's life), the company's engineers reconsidered their expectations. They estimated that the equipment's useful life would more likely be six years in total, instead of the previously estimated eight years. Required: 1. Calculate the equipment's accumulated depreciation and carrying amount at the beginning of 2022 immediately before the change in useful life. 2. Calculate the depreciation expense per year after the change in useful life.

Name: Question 4:On January 1, 2020, Penaji Corporation acquired equipment
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Description: Question 4:On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated atthat time this equipment would have a useful life of eight years and a residual value of $ 3,000.The straight line method of depreciation is us

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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