E9-17 (Supplement 9B) Determining Financial Statement Effects of a Change in Estimate [LO 9-S2]

[The following information applies to the questions displayed below.]

E9-17 (Supplement 9B) Determining Financiar Statement Effects of a Change in Estimate LCO 9-S2 e following information applies to the questions displayed below. Wiater Company operates a small manufacturing facility. On January 1, 2015, an asset account for the company showed the following balances: Equipment $165,000 Accumulated Depreciation beginning of year 77,000 During the first week of January 2015, the following expenditures were incurred for repairs and maintenance: Routine maintenance and repairs on the equipment 1,950 Major overhaul of the equipment that improved efficiency 25,000 The equipment is being depreciated on a straight-line basis over an estimated life of 10 years with a $11,0oo estimated residual value. The annual accounting period ends on December 31