The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimatedand no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded$160,000 in depreciation in 2016 and 2017. Early in 2018, the company revised the total estimated life of themachinery to eight years.Required:1. What type of change is this?2. Briefly describe the accounting treatment for this change.3. Determine depreciation for 2018.

Atomic Corporation has a June 30th year end. It has used straight line depreciation on its reactor since its purchase for $912,800 January 1, 2018 based on expectations of a ten year life.  No salvage value was estimated. At the beginning of the fiscal year of July 1st, 2022 , management realized that that the reactor life was in reality only 4 years. This is considered a change in accounting estimate and you are asked to solve it. Required 1: What is the amount of Depreciation Expense reported for the year ended June 30th, 2022?  $  Required 2: What is the amount of Depreciation Expense to be reported for the year ended June 30th, 2023?  $  Required 3: What is the amount of Accumulated Depreciation that is retroactively recognized on July 1st 2022 when the remaining useful life is re-estimated?  $  Required 4: What is the Net Book Value of the reactor on June 30th, 2022?  $  Required 5: What is the Net Book Value of the reactor on December 31st, 2022?  $  Required 6: What is the Net…

Dog

On April 17, 2016, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2016, 240,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2016. 2. Discuss the accounting treatment of the depletion calculated in requirement 1.