Revision of DepreciationOn January 2, 2012, Mosler, Inc., purchased equipment for $85,000. The equipment was expected to have a $10,000salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Beforeadjusting the accounts for 2016, Mosler decided that the useful life of the equipment should be extended by threeyears and the salvage value decreased to $8,000.a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your answer to thenearest dollar.Dec. 31General JournalDebitTo record depreciation expense.0Credit000b. What is the book value of the equipment at the end of 2016 (after recording the depreciation expense for 2016)?Book Value at year ended December 31, 2016: $ 0

IAS 16 Property, plant and equipment is the standard that deals with depreciation. Under this…

Answered: a. Prepare a journal entry to record…

a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your answer to the nearest dollar.

Cornerstones of Financial Accounting

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Chapter7: Operating Assets

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Problem 53E: Revision of Depreciation On January 1, 2017, Blizzards-R-Us purchased a snow-blowing machine for...

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Question

Revision of Depreciation
On January 2, 2012, Mosler, Inc., purchased equipment for $85,000. The equipment was expected to have a $10,000
salvage value at the end of its estimated six-year useful life. Straight-line depreciation has been recorded. Before
adjusting the accounts for 2016, Mosler decided that the useful life of the equipment should be extended by three
years and the salvage value decreased to $8,000.
a. Prepare a journal entry to record depreciation expense on the equipment for 2016. Round your answer to the
nearest dollar.
Dec. 31
General Journal
Debit
To record depreciation expense.
0
Credit
0
0
0
b. What is the book value of the equipment at the end of 2016 (after recording the depreciation expense for 2016)?
Book Value at year ended December 31, 2016: $ 0

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