15.Oregon Company is in the process of preparing its financial statements for 2024. Assume that no entries for any depreciation or accounting changes have been recorded in 2024. The following information related to depreciation of fixed assets is provided to you:

Oregon purchased a machine on July 1, 2022, at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life of 10 years. Oregons bookkeeper recorded straight-line depreciation in 2022 and 2023 but erroneously assumed a useful life of 8 years.

The entries to record the 2024 depreciation on the machine and the prior period adjustment will increase Accumulated Depreciation by:

Select one:

a. $4,500

b. $3,600

c. $10,800

d. $12,600

e. $5,400

16.Oregon Company is in the process of preparing its financial statements for 2023. Assume that no entries for any depreciation or accounting changes have been recorded in 2023. The following information related to depreciation of fixed assets is provided to you:

During 2023, Oregon changed from the double-declining balance method for its building to the straight-line method. The building originally cost $800,000. It had an original useful life of 20 years and a salvage value of $100,000. Purchase date was 1/1/21.

Following all appropriate adjusting/closing journal entries, the 2023 depreciation expense for the building will be:

Select one:

a. $169,200

b. $188,000

c. $31,556

d. $36,000

e. $30,444