Depreciation Expense for the Most Recent Fiscal Year on Equipment

question 40

Essay

Depreciation expense for the most recent fiscal year on equipment purchased a few years ago is $10,000.The balance sheet at the end of the same year disclosed the following: The asset is not expected to have a salvage value and the firm depreciates the asset on the straight-line basis.In March of the NEXT year (the year of change),the firm decided to reduce the original total useful life 20% and that a salvage value of $30,000 is a reasonable estimate.The firm also decided that the double declining balance method is a more appropriate depreciation method for this asset.
Required:
(a)The entry to record the accounting change.
(b)The entry to record depreciation expense in the year of change.

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Definitions:

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The way in which memories are structured, stored, and retrieved in the brain, often influencing how information is recalled.

Free Recall

Free recall is a memory task in which a person is asked to remember information in any order, without cues or prompts, typically used to assess memory performance.

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The accumulated information, understanding, and skills that an individual possesses, which can be added to and accessed for decision-making and problem-solving.