Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 09 Aug 2017 My Price 5.00

Robillard Inc.

E22-6 (Accounting Changes—Depreciation) Robillard Inc. acquired the following assets in January of 2009. Equipment, estimated service life, 5 years; salvage value, $15,000 $465,000 Building, estimated service life, 30 years; no salvage value $780,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2012, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. Instructions (a) Prepare the journal entry to record depreciation expense for the equipment in 2012. (b) Prepare the journal entry to record depreciation expense for the building in 2012. (Round to nearest dollar.)

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Maurice Tutor
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Status NEW Posted 09 Aug 2017 05:08 PM My Price 5.00

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