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

question 87

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 9^th 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 9^th year to reflect the change; if none is required,explain.
(c)Give the depreciation entry (year-end adjusting entry)for the 9^th year.Show computations.

---

Definitions:

Sanitary Landfill

A waste disposal site where trash is isolated from the environment until it is safe. It is considered the most common method of organized waste disposal.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values in a data set deviate from the mean.

Capacity

The maximum level of output that a company can sustain to produce goods or services at a given time.

Demand Pattern

The trends, fluctuations, and behaviors in consumer demand over a specific period.