Question
On January 1, 2019, the Blackwell Investment Company purchased a machine for $420,000. The company expects the service life of the machine to be five
On January 1, 2019, the Blackwell Investment Company purchased a machine for $420,000. The company expects the service life of the machine to be five years and its anticipated residual value to be $25,200. The company's fiscal year-end is December 31 and the double-declining-balance (DDB) depreciation method is used. During 2021, the company switched from the double-declining-balance to the straight-line method and estimated that they would still be able to use the machine until the end of 2024, In 2022, the adjusting entry to depreciation expense is: $63.000 $31.500 $25.200 O $42,000
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