EBK INTERMEDIATE ACCOUNTING
EBK INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946465
Author: SANNELLA
Publisher: VST
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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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Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY