Question
Lambert Company acquired machinery costing 110,000 on january 2nd 2016 at that time lambert estimated the useful life of the equipment was 6 years old
Lambert Company acquired machinery costing 110,000 on january 2nd 2016 at that time lambert estimated the useful life of the equipment was 6 years old and the residual value would be 15,000 at estimated the end of its useful life. Compute depreciation expense for this asset for 2016, 2017, 2018 using
a) straight line method
b) double declining balance method
c) assume that on Jan 2nd 2018 Lambert revised its estimate of the useful life to 7 years and changed its estimate of the residual value to 10,000. What effect would this have on depreciation expense in 2018, for each of the above depreciation methods?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started