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On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightline method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST Co. determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 20X9 of: a) $1,095,000. b) $1,155,000. c) $1,200,000. d) $1,320,000

On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightline method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST Co. determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The accumulated depreciation for this machine should have a balance at December 31, 20X9 of: a) $1,095,000. b) $1,155,000. c) $1,200,000. d) $1,320,000

Intermediate Accounting: Reporting And Analysis
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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...
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On January 1, 20X6, RAST Co. purchased a machine for $1,980,000 and depreciated it by the straightline
method using an estimated useful life of eight years with no salvage value. On January 1, 20X9, RAST
Co. determined that the machine had a useful life of six years from the date of acquisition and will have a
salvage value of $180,000. An accounting change was made in 20X9 to reflect these additional data. The
accumulated depreciation for this machine should have a balance at December 31, 20X9 of:
a) $1,095,000.
b) $1,155,000.
c) $1,200,000.
d) $1,320,000

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