In 20x1, an Asset Was Purchased for $45,000 and Has

question 114

Essay

In 20x1, an asset was purchased for $45,000 and has been depreciated using sum-of-the-years'-digits based on an estimated useful life of five years and no residual value.In 20x3 (before the adjusting an closing entries), the company decided to change to straight-line depreciation.The estimated useful lif was not to be changed.
(a)Give the entry required when the decision was made.
(b)Give the entry for depreciation expense for 20x3.

---

Definitions:

Free On Board

A shipping term indicating that the seller bears the transportation costs and risks up to the point of delivery to the carrier, after which the buyer takes over.

Sale-Or-Return

A sales agreement that allows the purchaser to return unsold goods to the seller rather than pay for them, typically used in retail or wholesale.

Risk Of Loss

Refers to the potential financial loss a party may face in a transaction due to damage, destruction, or theft of goods before they are delivered.

Formal Ball Gowns

Elegant and sophisticated dresses worn by women to formal events, characterized by their long length, luxurious fabrics, and ornate details.