In January 2020, installation costs of $6,000 on new machinery were charged to Maintenance and Repairs Expense. Other costs of this machinery of $30,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no salvage value. At December 31, 2021, it is decided that the machinery has a remaining useful life of 20 years, starting with January 1, 2021. What entry(ies) should be made in 2021 to correctly record transactions related to machinery, assuming the machinery has no salvage value? The books have not been closed for 2021 and depreciation expense has not yet been recorded for 2021.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2027.

At the beginning of 2018, Bridgeport Company acquired equipment costing $187,400. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $18,740 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year. During 2020 (the third year of the equipment's life), the company's engineers reconsidered their expectations, and estimated that the equipment's useful life would probably be 7 years (in total) instead of 6 years. The estimated salvage value was not changed at that time. However, during 2023 the estimated salvage value was reduced to $5,000. Indicate how much depreciation expense should be recorded each year for this equipment, by completing the following table. Depreciation Expense Accumulated Depreciation Year 2018 24 %24 2019 2020 2021 2022 2023 2024

In 2024, it was discovered that Brandon Irons Metal works had debited expense for the full cost of an asset purchased on January 1, 2021. The cost was $12 million with no expected residual value. Its useful life was 5 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2024 before the adjusting and closing entries includes:

At the beginning of 2021, Westglow Company purchased equipment for $525,000 that was assigned an estimated useful life of 5 years and an estimated salvage value of $50,000. The company uses straight-line depreciation for all of its plant and equipment. When preparing adjusting entries at December 31, 2024, it was discovered that the bookkeeper had failed to deduct the salvage value in computing the depreciation base for 2021, 2022, and 2023.  Westglow issues 2-year comparative financial statements. Which of the following statements describes the procedure that should be followed at December 31, 2024?   Answer a. Westglow should compute the amount of annual depreciation expense that should have been recorded for 2023 and adjust accumulated depreciation and depreciation expense for the difference.  The financial statements for 2023 should be restated and the effect of the error should be reported as an adjustment to the beginning balance of retained earnings for 2024. b.…

Sheffield Company purchased machinery on January 1, 2020, for $93,600. The machinery is estimated to have a salvage value of $9,360 after a useful life of 8 years. (a) Your answer is incorrect. Compute 2020 depreciation expense using the sum-of-the-years'-digits method. Depreciation expense $ eTextbook and Media Save for Later Last saved 1 second ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: unlimited (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer

A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates salvage value of $3,000 and a useful life of five years.  It uses the straight‐line method of depreciation.  Where applicable, it applies the half‐year rule. On December 31, 2021 the equipment’s fair value is estimated to be $3,000.  What is the impairment loss for 2021? $3,000 $5,400 $7,800 $10,800

Equipment was purchased at the beginning of 2019 for $820000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $97000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $61000. The amount to be recorded for depreciation for 2022, reflecting these changes in estimates, is $91700. $94875. $51643. $79500.