KEC Has a Machine That Cost $75,000 (No Residual Value)that

question 1

Essay

KEC has a machine that cost $75,000 (no residual value)that was being depreciated over a 15-year estimated life, using SL.On the basis of more experience, during the 9th year, management decided to use a revised total estimate of 20 years.
(a)What kind of accounting change does this represent? _.
(b)Give entry in 9th year to reflect the change; if none is required, explain.
(c)Give the depreciation entry (year-end adjusting entry)for the 9th year.Show computations.

---

Definitions:

Partnership

A legitimate form of commercial enterprise that involves shared management and profit distribution among two or more participants.

Owner

An individual or entity that possesses property, rights, or interests in an asset or item.

Capital Contribution

The funds, property, or other assets provided by owners or partners to a company for use in the business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.