Thurber Co. purchased equipment for $710,000 which was estimated to have a useful life of 10 years

Question:

Thurber Co. purchased equipment for $710,000 which was estimated to have a useful life of 10 years with a residual value of $10,000 at the end of that time. Depreciation has been entered for 7 years on a straight-line basis. In 2019, it is determined that the total estimated life should be 15 years with a residual value of $4,000 at the end of that time.


Instructions

a. Prepare the entry (if any) to correct the prior years' depreciation.

b. Prepare the entry to record depreciation for 2019.

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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