At January 1, 2022, Porter Manufacturing revised the estimated useful life of a major piece of machinery. Due to advancements in technology, the company reassessed the useful life of the machinery and determined that it would be productive for only 6 more years starting from that date. At December 31, 2021, the machinery had a book value of $120,000. Depreciation for 2021 was based on a remaining useful life of 10 years and no salvage value. The company uses straight-line depreciation. What is the revised depreciation expense for 2022? Answer a. $20,000 b. $12,000 c. $25,000 d. $15,000
At January 1, 2022, Porter Manufacturing revised the estimated useful life of a major piece of machinery. Due to advancements in technology, the company reassessed the useful life of the machinery and determined that it would be productive for only 6 more years starting from that date. At December 31, 2021, the machinery had a book value of $120,000. Depreciation for 2021 was based on a remaining useful life of 10 years and no salvage value. The company uses straight-line depreciation. What is the revised depreciation expense for 2022? Answer a. $20,000 b. $12,000 c. $25,000 d. $15,000
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 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
Related questions
Question
At January 1, 2022, Porter Manufacturing revised the estimated useful life of a major piece of machinery. Due to advancements in technology, the company reassessed the useful life of the machinery and determined that it would be productive for only 6 more years starting from that date. At December 31, 2021, the machinery had a book value of $120,000.
Answer
a.
$20,000
b.
$12,000
c.
$25,000
d.
$15,000
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