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At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12.5 million. $9.5 million of the purchase price was allocated to the
At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $12.5 million. $9.5 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight- line method, a 25-year useful life, and a $1.5 million residual value. Assume that 2022 depreciation was incorrectly recorded as $32,000. This error was discovered in 2024. Required: 1. Record the journal entry needed in 2024 to correct the error. 2. What is depreciation on the building for 2024, assuming no change in estimate of useful life or residual value?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
