question archive Machinery purchased for $52,000 by XYZ Co
Machinery purchased for $52,000 by XYZ Co
Subject:AccountingPrice: Bought3
Machinery purchased for $52,000 by XYZ Co. in 2010 was originally estimated to have a life of 8 years with a residual value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total estimated life should be 10 years with a residual value of $4.500 at the end of that time. Assume straight-line depreciation Instructions: a. Prepare the entry to correct the prior years' depreciation, if necessary. b. Prepare the entry to record depreciation for 2015.
