Question
a. Barga Company purchases $32,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $4,400 at the
a. Barga Company purchases $32,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $4,400 at the end of that time.
b. Welch Company purchases $11,200 of land on January 1, 2017. The land is expected to last indefinitely.
Prepare the entries to record one years depreciation expense of $5,520 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2017?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
