Damians Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world’s leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Damians owns a Didde press acquired at an original cost of $400,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $50,000 estimated residual value. At the end of 2024, the press had been depreciated for eight years. On April 1, 2025, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $73,000 would be more realistic. The fiscal year ends December 31. Required: 1-a. Compute the amount of depreciation expense recorded in 2024. depreciation expense: 17500 1-b. Compute the carrying amount of the printing press at the end of 2024. Carrying Amount: 260,000 2. Compute the amount of depreciation that should be recorded in 2025. 3. Prepare the adjusting entry to record depreciation expense at December 31, 2025.
Damians Corporation is a global publisher of magazines, books, and music, as well as video collections, and it is one of the world’s leading direct-mail marketers. Many direct-mail marketers use high-speed Didde press equipment to print their advertisements. These presses can cost more than $1 million. Assume that Damians owns a Didde press acquired at an original cost of $400,000. It is being
Required:
1-a. Compute the amount of depreciation expense recorded in 2024.
1-b. Compute the carrying amount of the printing press at the end of 2024.
2. Compute the amount of depreciation that should be recorded in 2025.
3. Prepare the
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