Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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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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Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

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