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Exon Company purchased equipment for $160,000 on January 1, 2018. The equipment has an estimated residual value of $4,800 and an estimated useful life of

Exon Company purchased equipment for $160,000 on January 1, 2018. The equipment has an estimated residual value of $4,800 and an estimated useful life of 8 years. The company depreciates the equipment using the straight-line method. On January 1, 2021, the company determines that the total useful life is 6 years and the estimated residual value is $1,600.

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Prepare the entry to record depreciation expense for 2021.

Date Account Name Dr. Cr.
Dec. 31, 2021 AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A Answer Answer
AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained EarningsPrior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reversal of Impairment LossLoss on ImpairmentLoss on DisposalN/A Answer Answer

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