On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used.

On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment: Land 2,000,000.00 Building 15,000,000.00 Accumulated Depreciation 3,750,000.00 Machinery 3,000,000.00 Accumulated Depreciation 1,500,000.00 Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2010. The straight line method is used.

Name: On January 1, 2020, Covid 19 Company reported the following account b
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Description: On January 1, 2020, Covid 19 Company reported the following account balances relating to property, plant and equipment:Land 2,000,000.00Building 15,000,000.00Accumulated Depreciation 3,750,000.00Machinery 3,000,000.00Accumulated Depreciation 1,500,0

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 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
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