Question 19 HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, th estimated that the machine would last 6 years and have a salvage value of $90,000. They begin depreciating the machine using the straight-line depreciation method. On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years. What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine?

Question 19 HoneyBunny, Inc. purchased a machine on 1/1/2016 for $300,000. At the time of the purchase, th estimated that the machine would last 6 years and have a salvage value of $90,000. They begin depreciating the machine using the straight-line depreciation method. On 1/1/2019, they change their estimated salvage value to $50,000 and extend the useful life of the machine by 2 years. What amount of depreciation expense will HoneyBunny report (at year-end) in 2019 related to this machine?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...

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