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:

Mathematics Achievement

A measure or evaluation of proficiency in mathematical concepts and skills.

Standard Deviation

A technique for assessing the range and magnitude of variation among a set of figures.

Standard Deviation

A measure of the dispersion or variability of a set of numeric values, showing how much variation there is from the mean.

Largest

Describing the greatest in size, extent, or capacity.