1 . Arcadia purchased equipment for $510,000 with an estimated useful life of 10 years and a salvage value of $10,000 at the end of that time. Depreciation has been recorded for 7 years on a straight-line basis. In 2022 (year 8), it determined that the total estimated life should be 15 years with a salvage value of $5,000 at the end of that time.

What is the New depreciation each year moving forward with the new estimate AND what journal would they make at the end of 2022 to account for this depreciation?

2. On July 1, 2022, Wright Company sells office furniture for $16,000 cash. The office furniture originally cost $60,000, originally had a useful like of 3 years, a salvage value of $6,000 and was purchased 9/1/19. As of January 1, 2022, had accumulated depreciation of $42,000. Depreciation for the first six months of 2022 is $8,000.

a. What Journal Entries are required when Wright sells its office furniture on July 1, 2022?

b. Assume that instead of selling the office furniture for $16,000, Wright sells it for $9,000.

c. Assume that instead of selling the office furniture for $16,000, Wright donates the furniture to a charity and receives $0 in exchange.