The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

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Answer 1

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

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Answer 2

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 3

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 4

Question

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Expert Solution & Answer

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Answer 5

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 6

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 7

Chapter 21, Problem 21.5E

a.

To determine

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 8

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 9

b.

To determine

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

Answer 10

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

Answer 11

c.

To determine

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.

Answer 12

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 13

d.

To determine

To prepare: The footnote disclosure for change in accounting estimate.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

The original cost of plant asset. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

The annual depreciation for first 10 years. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Expected residual value is $500,000. Estimated useful life is 25 years.

To prepare: The journal entry to record the change in estimate. Given information: Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year. Revised expected residual value is $100,000. Revised estimated useful life is 20 years.

To prepare: The footnote disclosure for change in accounting estimate.

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Chapter 21 Solutions

The original cost of plant asset.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

The annual depreciation for first 10 years.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Expected residual value is $500,000.

Estimated useful life is 25 years.

To prepare: The journal entry to record the change in estimate.

Given information:

Net book value of asset after 10 years is $2,600,000 on Jan 1 of current year.

Revised expected residual value is $100,000.

Revised estimated useful life is 20 years.