Question 4: On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated at that time this equipment would have a useful life of eight years and a residual value of $ 3,000. The straight line method of depreciation is used by the company for the equipment, and its year end is December 31. St the beginning of 2022 (the beginning of the third year of the equipment's life), the company's engineers reconsidered their expectations. They estimated that the equipment's useful life would more likely be six years in total, instead of the previously estimated eight years. Required: 1. Calculate the equipment's accumulated depreciation and carrying amount at the beginning of 2022 immediately before the change in useful life. 2. Calculate the depreciation expense per year after the change in useful life.

Question 4: On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated at that time this equipment would have a useful life of eight years and a residual value of $ 3,000. The straight line method of depreciation is used by the company for the equipment, and its year end is December 31. St the beginning of 2022 (the beginning of the third year of the equipment's life), the company's engineers reconsidered their expectations. They estimated that the equipment's useful life would more likely be six years in total, instead of the previously estimated eight years. Required: 1. Calculate the equipment's accumulated depreciation and carrying amount at the beginning of 2022 immediately before the change in useful life. 2. Calculate the depreciation expense per year after the change in useful life.

Name: Question 4:On January 1, 2020, Penaji Corporation acquired equipment
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Description: Question 4:On January 1, 2020, Penaji Corporation acquired equipment costing $ 65,000. It was estimated atthat time this equipment would have a useful life of eight years and a residual value of $ 3,000.The straight line method of depreciation is us

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...

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