The Peridot Company purchased machinery on January 2, 2019, for $900,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $180,000 in depreciation in 2019 and 2020. Early in 2021, the company revised the total estimated life of the machinery to eight years. Required: 1. What type of change is this? 2. Is Peridot required to revise prior years' financial statements as a result of the change? 3. Is Peridot required to provide a disclosure note to report the change? 4. Determine depreciation for 2021. 1. Type of change 2. Is Peridot required to revise prior years' financial statements? 3. Is Peridot required to provide a disclosure note to report the change? 4. New annual depreciation

Q: July 12: Paid amount owed to Tabby Company. Activity Operating v Accounts Cash Decrease, Account…

A: Transaction: It is an event between a buyer and seller which involves money. It is an exchange of…

Q: Service- industry example

A: Service industry: A service industry is an economic sector that delivers particular intangible…

Q: What is general ledge

A: What is general ledger?.

Q: D. Compute the following cost: i Prime cost ii. Conversion cost iii. Inventoriable cost iv.…

A: Since it was asked to solve part D and E. D and E part has been solved.

Q: AIS conceptual design

A: AIS stands for Accounting Information System. The process of keeping the accounts and financial…

Q: John wishes to borrow 20,000. Lender X and Y offer the following terms: (1) Lender X will be repaid…

A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: I need help

A: A payroll journal is a written record of accounting transactions pertaining to payroll. Payroll…

Q: Uncollectible Accounts-Percentage of Sales and Percentage of Recelvab At the end of the current…

A: We shall answer the first question since the exact one was not specified. Please resubmit a new…

Q: Identify the gragh?

A: Part a: Total direct material cost increases or decreases in direct proportion to change in activity…

Q: Define customers

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: What is bolt-on software?

A: Software:   Software can be defined as a set of data, programs, and instructions that are used to…

Q: kindly, explain more

A: When deciding where to invest there many factors that need to be considered in order to take any…

Q: 1. Descibe JIT production and its features.

A: Just in time production represents the reduction in labor, material, and time so that the cost could…

Q: What is ethical accounting

A: Ethics: At its most basic level, ethics is a set of moral rules that guide behavior. They have an…

Q: a. Prepare a common-sized income statement comparing the results of operations for Sorenson…

A: Common size income statement is used for vertical analysis wherein each item in the income statement…

Q: Describe moral hazard.

A: Moral hazard refers to circumstances in which an individual chooses to apply little or no effort, or…

Q: Help needed

A:

Q: Explain professional association (PA)?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Define useful life

A: Depreciation is the systematic allocation of the depreciable amount of an asset over its useful…

Q: Egyghh gyu

A: Hope it helps :)

Q: Define writing an option

A: Options refer to a contract that gives its buyer the right and not the obligation to buy or sell an…

Q: The communication process consists of many stages. In which stage of the communication the receiver…

A: The communication process consists of many components - 1. Sender 2. Encoding 3. Message 4. Noise 5.…

Q: Define Ethics.

A: Ethics are a set of moral principles they affect how people in a society make decisions and how…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.