Tedesco Company changed depreciation methods in 2022 from doubledeclining balance to straight-line. Depreciation prior to 2022 under
Question:
Tedesco Company changed depreciation methods in 2022 from doubledeclining balance to straight-line. Depreciation prior to 2022 under double-declining-balance was $90,000, whereas straight-line depreciation prior to 2022 would have been $50,000. Tedesco’s depreciable assets had a cost of $250,000, with a $40,000 residual value and an 8 year remaining useful life at the beginning of 2022. Prepare the 2022 journal entry, if necessary, related to Tedesco’s depreciable assets.
Step by Step Answer:
The journal entry to reflect the change in depreciation method from doubledecliningbalance to straig...View the full answer
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
Tedesco Company changed depreciation methods in 2019 from double-declining-balance to straight-line. Depreciation prior to 2019 under double-declining-balance was $90,000, whereas straight-line...
-
Tedesco Company changed depreciation methods in 2014 from double-declining-balance to straight-line. Depreciation prior to 2014 under double-declining-balance was $90,000, whereas straight-line...
-
Tedesco Company changed depreciation methods in 2020 from double-declining balance to straight-line. Depreciation prior to 2020 under double-declining-balance was $90,000, whereas straight-line...
-
You can choose between two purchases: Machine A or Machine B. Machine A costs $25,000 and has a scrap value of $12,000 after 3 years. Machine B costs $30,000 and has a salvage value of $16,000 after...
-
Find equations of both lines that are tangent to the curve y = 1 + x3 and parallel to the line 12x - y = 1.
-
Seth Feye established Reliance Financial Services on July 1, 2014. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after...
-
What are the six criteria for determining the value of an option?
-
Davison Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned...
-
Find the length of h. Type your answer as a number only. Example) 10 not h=10 8
-
Daffy Dave's Sub Shop makes submarine sandwiches to order. Dave is analyzing the processes at the shop. The general flow of the process is shown below. A separate person works at each step in the...
-
Linden plc started operations on January 1, 2017, and has used the FIFO method of inventory valuation since its inception. In 2022, it decides to switch to the average-cost method. You are provided...
-
The following are three independent, unrelated sets of facts relating to accounting changes. Situation 1: Sanford Company is in the process of having its first audit. The company has used the cash...
-
(a) Use the general solution obtained in Problem 35 to solve the IVP 4'' + tx = 0, x(0.1) = 1, x'(0.1) = 1/2. Use a CAS to evaluate coefficients. (b) Use a CAS to graph the solution obtained in part...
-
1.Explain how tariffs work? 2.How can the lack of international competition impact prices in the United States? 3.Domestically, who benefits from tariffs? Who could tariffs be bad for? 3.Using the...
-
Give four principal reasons economies of scale can occur when output increases. Provide examples of each for a service firm.
-
Managers practice 4 fundamental functions: planning, organizing, leading, and controlling. As a manager moves higher in the organization, they are faced with broader responsibilities and use all 4...
-
Focusing on TAKT time, consider the following. a. You have product demand of 800 units per day. You currently work one 8-hour shift, with 7.5 real work hours. What is your TAKT time? b. Your demand...
-
Make a PowerPoint infographic of 3 different logic controllers used in PLC programming. Include an example of the logic controller in a ladder logic set up, how it is working, and what function is...
-
Conlin AG had the following tax information. In 2019, Conlin suffered a net operating loss of ¬480,000, which it elected to carry back. The 2019 enacted tax rate is 29%. Prepare Conlin's entry to...
-
A Firm intends to invest some capital for a period of 15 years; the Firm's Management considers three Options, each consisting of purchasing a machinery of a specific brand, different for each...
-
Late in 2014, Joan Seceda and four other investors took the chain of Becker Department Stores private, and the company has just completed its third year of operations under the ownership of the...
-
Referring to the situation in P9-2 for Garcia Home Improvement Company, consider the following expanded data at May 31, 2017. Assume Garcia uses LIFO inventory costing. Instructions (a) (1) Determine...
-
The records for the Clothing Department of Sharapova's Discount Store are summarized below for the month of January. Inventory, January 1: at retail $25,000; at cost $17,000 Purchases in January: at...
-
The best approach for determining the Wednesdays on which food orders were received is to put the ReceivingSlip table in a new query, populate the query with the needed attributes, and: 1) Create the...
-
Cullumber Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales...
-
Make-or-Buy Decision Matchless Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full...
Study smarter with the SolutionInn App