Question
Coffee Corp. buys a new, industrial espresso machine on 1/1/2021 for $10,000. The machine has an estimated residual value of $1,000 and a useful life
Coffee Corp. buys a new, industrial espresso machine on 1/1/2021 for $10,000. The machine has an estimated residual value of $1,000 and a useful life of 9 years. During 2024, it is determined that the machine will have a total useful life of 5 years (instead of 9) and no residual value (instead of $1,000). Coffee Corp. uses the straight-line method to estimate depreciation and has a calendar year-end. Coffee Corp. only closes its books once per year (annually). Provide the journal entry Coffee Corp. will record on 12/31/204 to recognize depreciation expense:
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