An Asset That Cost $9,000 on January 1, 20x1, Was

question 61

Essay

An asset that cost $9,000 on January 1, 20x1, was being depreciated using the straight-line method over five years with an estimated residual value of $1,500.At the beginning of 20x3, the company decided to use a six-year life and a residual value of $600.
(a)Give any correcting entry at January 1, 20x3.
(b)Give the 20x3 adjusting entry to record depreciation.

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Definitions:

Suburban Homeownership

The state or condition of owning a home in a suburban area, which typically implies a residential setting outside of urban centers, often associated with middle-class values and lifestyles.

Minorities

Groups in a population that are smaller in number and often differentiated by ethnicity, race, religion, or other identifying factors, sometimes facing social disadvantages.

In God We Trust

The official motto of the United States, adopted in 1956, which appears on American currency and symbolizes the country's acknowledgment of religion in public life.

Currency

The system of money in general use in a particular country, region, or economic system, facilitating trade and economic activities.