Question
I need help with numbers 2 and 3 preparing journal entries for 5th year Bailand Company purchased a building for $210,000 that had an estimated
I need help with numbers 2 and 3 preparing journal entries for 5th year
Bailand Company purchased a building for $210,000 that had an estimated residual value of $10,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the followingindependentsituations occur:
1.Bailand estimates that the asset has 8 years' life remaining (for a total of 12 years).2.Bailand changes to the sum-of-the-years'-digits method.3.Bailed discovers that the estimated residual value has been ignored in the computation of depreciation expense.
2.Bailand changes to the sum-of-the-years'-digits method.3.Bailand discovers that the estimated residual value has been ignored in the computation of depreciation expense.
3.Bailand discovers that the estimated residual value has been ignored in the computation of depreciation expense.
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