An Asset Cost $12,000 When Acquired and Had an Estimated

question 131

Essay

An asset cost $12,000 when acquired and had an estimated useful life of 10 years with no estimated residual value.Use straight-line depreciation.During Year 7,the overall life was changed to 12 years.
(a)What should be recorded as depreciation expense for Year 7? $_________________________.
(b)What would the balance of accumulated depreciation be at the start of Year 8? $______________________________
(c)Would a correCt.ing entry be made during Year 7 for the change?
Yes ____________ No ______________ Explain why._______________

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Definitions:

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