Building: 40-year estimated useful life, $72,000 residual value, $2,400,000 cost Equipment: 12-year estimated useful life, $11,560 residual value, $132,400 cost The building was depreciated under the double-declining-balance method through 2022. In 2023, the company decided to switch to Che straight-line method of depreciation because of a change in the pattern of benefits received. In 2023, Sunland decided to change the equipment's total useful life to 15 years, with a residual value of $6,000 at the end of that time. The equipment is depreciated using he straight-line method. a) Prepare the journal entry necessary to record the depreciation expense on the building in 2023. (Ignore income tax effects.) (List debit entry before credit entry Credit account titles are automatically ind
Building: 40-year estimated useful life, $72,000 residual value, $2,400,000 cost Equipment: 12-year estimated useful life, $11,560 residual value, $132,400 cost The building was depreciated under the double-declining-balance method through 2022. In 2023, the company decided to switch to Che straight-line method of depreciation because of a change in the pattern of benefits received. In 2023, Sunland decided to change the equipment's total useful life to 15 years, with a residual value of $6,000 at the end of that time. The equipment is depreciated using he straight-line method. a) Prepare the journal entry necessary to record the depreciation expense on the building in 2023. (Ignore income tax effects.) (List debit entry before credit entry Credit account titles are automatically ind
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 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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