The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $192,000 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. X Answer is not complete. 1. Type of change Change in accounting estimate 2. Is Peridot required to revise prior years' financial statements? No 3. Is Peridot required to provide a disclosure note to report the change? New annual depreciation Yes 4.

The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $192,000 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. X Answer is not complete. 1. Type of change Change in accounting estimate 2. Is Peridot required to revise prior years' financial statements? No 3. Is Peridot required to provide a disclosure note to report the change? New annual depreciation Yes 4.

Name: The Peridot Company purchased machinery on January 2, 2019, for $960,
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Description: The Peridot Company purchased machinery on January 2, 2019, for $960,000. A five-year life was estimated and no residual valuewas anticipated. Peridot decided to use the straight-line depreciation method and recorded $192,000 in depreciation in 2019

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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