On January 1, 2009, Neal Corporation acquired equipment at a cost of $540,000. Neal adopted the sum-of-the-years’-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of eight years, with no residual value. At the beginning of 2012, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2012 would be Select one: a. $108,000 b. $28,125. c. $67,500 d. $45,000.

On January 1, 2017, Windsor Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,,600 salvage value, $768,000 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $91,000 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. Windsor 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" Por the account titles and enter 0 for the…

The Canliss Milling Company purchased machinery on January 2, 2022, for $930,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $186,000 in depreciation in 2022 and 2023. Early in 2024, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: Will Canliss apply the SYD method retrospectively or apply the method prospectively? Prepare any 2024 journal entry related to the change.

Concord Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $129,600. The company estimated that the machine would have a salvage value of $12,600 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 20,000 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to O decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2025 (b) (c) (d) Activity method for 2025, assuming that machine usage was 800 hours Sum-of-the-years'-digits for 2026 Double-declining-balance for 2026 $ $ LA $ 9,750 4,680 31,200 43,200

(Error and Change in Estimate—Depreciation) Joy Cunningham Co. purchased a machine on January 1, 2015, for $550,000. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment.InstructionsPrepare the general journal entries that should be made at December 31, 2018, to record these events. (Ignore tax effects.)

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…

On January 1, 2019, Ivanhoe Corporation acquired equipment at a cost of $858000. Ivanhoe adopted the sum-of-the-years’-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of 8 years, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2022 would be $171600. $107250. $44688. $71500.

Alteran Corporation purchased office equipment for $1.2 million at the beginning of 2022. The equipment is being depreciated over a 10-year life using the double-declining-balance method. The residual value is expected to be $600,000. At the beginning of 2024 (two years later), Alteran decided to change to the straight-line depreciation method for this equipment. Required: Prepare the journal entry to record depreciation for the year ended December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.

On January 1, 2020, Cullumber Corp. acquired a machine at a cost of $1020000. It is to be depreciated on the straight-line method over a 5-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Cullumber's 2020 financial statements. The oversight was discovered during the preparation of Cullumber's 2021 financial statements. Depreciation expense on this machine for 2021 should be $255000. $204000. $408000. $0.

Diamond Ltd acquired an item of polishing equipment on 1 July 2015 for $440,000. The equipment isexpected to have a useful life of 10 years and the straight-line method of depreciation is to be used.It has salvage value of $40,000. On 1 July 2017, the equipment is deemed to have a fair value of$424,000 and revaluation is undertaken in accordance with the Diamond Ltd policy of measuringproperty, plant and equipment at fair value. The asset is still usable for next 8 years but the salvagevalue is determined to be zero. The asset is sold for $356,000 on 1 July 2019.Required:Provide the journal entries necessary at the following dates to account for the above transactions andevents. (Ignore narrations). Show your workings. 01/07/2015 01/07/2017 01/07/2019