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Marigold Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The

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Marigold Company is in the process of preparing its financial statements for 2020. Assume that no entries for depreciation have been recorded in 2020. The following information related to depreciation of fixed assets is provided to you. 1. Marigold purchased equipment on January 2, 2017 for $84.900. At that time, the equipment had an estimated useful life of 10 years with a $4.900 salvage value. The equipment is depreciated on a straight line basis. On January 2, 2020, as a result of additional information, the company determined that the equipment has a remaining useful life of 4 years with a $2,800 salvage value During 2020, Marigold changed from the double-declining-balance method for its building to the straight-line method. The building originally cost $280,000. It had a useful life of 10 years and a salvage value of $28,000. The following computations present depreciation on both bases for 2018 and 2019. 2. 2019 2018 $25,200 $25,200 Straight-line Declining balance 44.800 56,000 3. Marigold purchased a machine on July 1, 2018, at a cost of $110,000. The machine has a salvage value of $16,000 and a useful life of 8 years. Marigold's bookkeeper recorded straight-line depreciation in 2018 and 2019 but failed to consider the salvage value (a) Your answer is partially correct Prepare the journal entries to record depreciation expense for 2020 and correct any errors made to date related to the Information provided. Onore taxes Credit account title ore automatically indented when amount is entered Do not indent manual no entry is required, select 'No Entry for the account titles and enter for the mounts) Debit Credit No. Account Titles and Explanation 1 Deprecated 13500 Accumulated Depreciation Endomet 2 Depreciation 25700 25200 Accumulated Depreciation Buildings 3. Depreciation Expense 6750 Accurated Depreciation Machinery (To record current year depreciation.) MI! (To correct prior year depreciation)

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