
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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5- Majaan International, purchased equipment for $500,000 which was estimated to have a useful life of 5 years with a salvage value of $90,000 at the end of that time. Depreciation has been recorded for 2 years on a straight-line basis. In 2010 (year 2), it is determined that the total estimated life should be 8 years with a salvage value of $2,000 at the end of that time.
Instructions:
a. What is the journal entry to correct the prior years’ depreciation?
b. Calculate the depreciation expense for 2010?
Answer a and b
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