Intermediate Accounting
Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 21, Problem 21.8BE
To determine

To prepare: The journal entry to record the change in estimate, ignoring any tax effects.

Given information:

Original cost of the asset is $750,000.

Residual value is $50,000.

Estimated life years are 20 years.

The residual value is reduced to $30,000.

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