Equipment was purchased at the beginning of 2019 for $870000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $102000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $63500. The amount to be recorded for depreciation for 2022, reflecting these changes in estimates, is $54857. O $84500. E O $97200. O $100813.
Equipment was purchased at the beginning of 2019 for $870000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $102000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $63500. The amount to be recorded for depreciation for 2022, reflecting these changes in estimates, is $54857. O $84500. E O $97200. O $100813.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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