Question
On Jan. 1, 2018, Clancy Inc. purchased equipment for $120,000. At this date, the equipment had an estimated useful life of 10 years and no
On Jan. 1, 2018, Clancy Inc. purchased equipment for $120,000. At this date, the equipment had an estimated useful life of 10 years and no residual value. Clancy Inc. uses straight-line depreciation. In 2020, Clancy Inc., re-evaluated this equipment and determined the useful life would actually be 7 years in total. It is a change in Accounting Estimate. Please answer the following question about this change.
1. What will be Clancy Inc.'s 2020 depreciation expense for this equipment?
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A Guide To Effective Internal Management System Audits Implementing Internal Audits As A Risk Management Tool
Authors: IT Governance Publishing
1st Edition
1849285594, 978-1849285599
