Babcock Company purchased a piece of machinery for $27,000 on January 1, 2019, and has been depreciating the machine using the sum-of-the-years'-digits method based on a five-year estimated useful life and no salvage value. On January 1, 2021, Babcock decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life is changed to a total of six years from the date of purchase. Ignore income taxes. Required: 1. Prepare the appropriate journal entry, if any, to record the accounting change under GAAP. 2. Prepare the journal entry to record depreciation for 2021.

Dewey Corporation purchased a machine for $340,000 on January 1, 2012. The machine had an                     estimated useful life of 12 years and an estimated residual value of $40,000. The machine was                     depreciated using the straight-line method.                                           On April 1, 2021, the company no longer needed the machine and sold it for $80,000. Dewey takes                     a half-year depreciation for the year an asset is disposed.                                           a. What is the book value of the machine at the end of 2020?                                           b. Calculate and record the depreciation for 2021 in the journal provided.                                           c. Calculate the book value of the machine at the time of sale.                                           d. Record the sale of the machine on April 1 in the journal provided.

On January 1, 2020, ABC Corp acquired a piece of machinery for $500,000. The machinery has an estimated useful life of 10 years and a residual value of $50,000. ABC Corp decided to use the double-declining balance method for depreciation. Additionally, the company incurred $15,000 in transportation costs and $5,000 in installation costs to get the machinery ready for use. Furthermore, on December 31, 2021, the company conducted an impairment test and determined that the machinery's recoverable amount is $450,000, and its fair value is $420,000. The company expects to use the machinery for the remaining estimated useful life. Prepare the necessary journal entries for ABC Corp related to the machinery for the year 2020 and 2021, including depreciation, impairment, and any adjusting entries needed at the end of each year

Cullumber Company purchased a machine on January 1, 2019, for $1008000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Cullumber determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information. Assume that the direct effects of this change are limited to the effect on depreciation and the related tax provision, and that the income tax rate was 30% in 2019, 2020, 2021, and 2022. What should be reported in Cullumber's income statement for the year ended December 31, 2022, as the cumulative effect on prior years of changing the estimated useful life of the machine?   $0   $100800   $67200   $504000

On January 2, 2017, Union Co. purchased a machine for P264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 2, 2020, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of P24,000. An accounting change was made in 2020 to reflect the additional data. The accumulated depreciation for this machine should have a balance at December 31, 2020, of O 146,000 O 154,000 O 176,000 O 160,000

Howarth Manufacturing Company purchased equipment on June 30, 2017, at a cost of $155,000. The residual value of the equipment was estimated to be $14,000 at the end of a five-year life. The equipment was sold on March 31, 2021, for $48,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required:1. Prepare the journal entry to record the sale.2. Assuming that Howarth had instead used the double-declining-balance method, prepare the journal entry to record the sale.

Oriole Company purchased a machine on January 1, 2019, for $927000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Oriole determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information.Assume that the direct effects of this change are limited to the effect on depreciation and the related tax provision, and that the income tax rate was 40% in 2019, 2020, 2021, and 2022. What should be reported in Oriole's income statement for the year ended December 31, 2022, as the cumulative effect on prior years of changing the estimated useful life of the machine? $463500 $61800 $0 $92700

devrat

On January 1, 2017, Buffalo Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,200 salvage value, $746,800 cost Equipment, 12-year estimated useful life, $10,800 salvage value, $103,500 cost The building has been depreciated under the double-declining-balance method through 2020. In 2021, the company decided to switch to the straight-line method of depreciation. Buffalo also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line method.(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for…

Babcock Company purchased a piece of machinery for $40,500 on January 1, 2019, and has been depreciating the machine using the sum-of-the-years'-digits method based on a five-year estimated useful life and no salvage value. On January 1, 2021, Babcock decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life is changed to a total of six years from the date of purchase. Ignore income taxes. Required: 1. Prepare the appropriate journal entry, if any, to record the accounting change under GAAP. 2. Prepare the journal entry to record depreciation for 2021.