Morrow Manufacturing has equipment that is comprised of five components (amounts in thousands).

Instructions
a. Prepare the adjusting entry necessary at the end of the year to record depreciation for the year. Assume that Morrow uses straight-line depreciation.
b. Prepare the entry to record the replacement of component B for cash of ¥40,000. It was used for 6 years.

Transcribed Image Text:

Component Cost Estimated Residual Estimated Life (in years) 10 ¥40,500 ¥5,500 4,800 3,600 33,600 36,000 1,500 2,500 19,000 23,500 7. ш D.