Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume you are the accountant for a small business. Consider the following situation.On January 2 , 2 0 1 9 , the business purchased a
Assume you are the accountant for a small business. Consider the following situation.On January the business purchased a large piece of equipment for $ At that time, you used straight line depreciation, with $ salvage value to depreciate the equipment over years. It is now January you have already recorded depreciation for You realize that the estimate of useful life that you are using to calculate depreciation is inaccurate. You now estimate that the equipment will only be useful for years from the date of acquisition with a salvage value of $ You are to write a message to the President, Janet Brown, describing how this change will affect the financial statements, both the income statement and balance sheet. Give a high level overview on how you calculated the new depreciation expense and accumulated depreciation. Also, discuss how this change will affect prior years financial statements.Remember your audience.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started