On January 1, 2010, Arlene Company Bought a Machine for $60

question 51

Essay

On January 1, 2010, Arlene Company bought a machine for $60, 000.It was then estimated that the useful life of the machine would be eight years with a salvage value of $8, 000.On January 1, 2014, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2000.The company used straight-line depreciation.
Required:
a. If an adjusting entry is necessary on January 1,2014 , prepare it.
b. Compute depreciation expense for 2014.

Recognize and correct organizational errors in documents.

Choose language and tone to favorably influence the reader's response.

Understand the importance of readability in business communications.

Understand the role of proofreading in ensuring error-free and clear communication.

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Definitions:

Monetary Resources

Financial assets or liquid assets available to a business or individual, including cash, bank deposits, and investments.

Operations Changes

Refers to alterations in the business processes or activities that can impact a company’s performance or strategy.

Reorganization Cost

Expenses associated with restructuring a company, which might include legal fees, severance pay, and costs for dismantling and reassembling departments.

Lawyer's Fees

Costs incurred for legal services provided by attorneys.