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On January 1, 2012, Rabbit Corp. acquired machinery which it depreciated using the straight-line method with an estimated useful life of fifteen years and no
On January 1, 2012, Rabbit Corp. acquired machinery which it depreciated using the straight-line method with an estimated useful life of fifteen years and no residual value. On January 1, 2017, Rabbit estimated that the remaining life of this machinery was six years with no residual value. This change should be accounted for by setting future annual depreciation equal to one-sixth of the book value on January 1, 2017. by continuing to depreciate the machinery over the original fifteen year life. as the cumulative effect of a change in accounting principle in 2017. as a prior period adjustment. On January 3, 2017, Coyote Corp. purchased machinery. The machinery has an estimated useful life of nine years and an estimated residual of $45,000. Coyote uses straight-line depreciation for all their machinery, and recorded \$77,000 depreciation expense for 2019. The acquisition cost of the machinery was $710,000. $738,000. $685,000. $693,000. On January 1, 2017, Leopard Corp. purchased a new machine for $700,000. The new machine has an estimated useful life of nine years and the residual value was estimated to be $50,000. Depreciation was calculated using the double declining-balance method. To the nearest dollar, what amount should be shown in Leopard's balance sheet at December 31, 2018, net of accumulated depreciation, for this machine? $445,000 $550,000 $427,778 $423,457
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