Intermediate Accounting, Student Value Edition (2nd Edition)
Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 21, Problem 21.5MC
To determine

The correct option.

Given information:

Cost of asset is $600,000

Estimated useful life is 6 years.

Depreciation is charged on SLM.

Revised useful life in the beginning of year 4 is 8 years.

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On January 1, 2007, Flax Co. purchased a machine for 528,000 and depreciated it by the straight-line method using an estimateduseful life of eight years with no salvage value. On January 1, 2010, Flax determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of 48,000. An accounting change was made in 2010 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 2010 ofa.292,000b.308,000c.320,000d.352,000
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Intermediate Accounting, Student Value Edition (2nd Edition)

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