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In January 2019. Ammar Wineries purchased a new wine press for $15,000. Ammar expected to use the wine press for 10 years, and at that
In January 2019. Ammar Wineries purchased a new wine press for $15,000. Ammar expected to use the wine press for 10 years, and at that time believed he could sell it at an estimated salvage value of $2.000. Ammar used double-declining balance depreciation for 2019 and 2020. In January 2021. Ammar decided to switch to straight line depreciation for the wine press. While he kept still believed the wine press would last for a total of 10 years, he updated the residual value to only $600 (Round all answers to the nearest whole number) Enter your final answers below as whole numbers without dollar signs. a) What amount of depreciation expense should Ammar Vineyards record on his 2021 year-end income statement? $ b) What carrying value of the wine press should Ammar report on his 2021 year-end balance sheet? $
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