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At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $13.1 million. $10.1 million of the purchase price was allocated to the building.
At the beginning of 2022, Robotics Incorporated acquired a manufacturing facility for $13.1 million. $10.1 million of the purchase price was allocated to the building. Depreciation for 2022 and 2023 was calculated using the straight-line method, a 20-year useful life, and a $2.1 million residual value. Assume that 2022 depreciation was incorrectly recorded as $40,000. This error was discovered in 2024.
- Record the journal entry needed in 2024 tocorrect the error.
- What is depreciation on the building for 2024, assuming no change in estimate of useful life or residual value?
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