Question
Oregon Company is in the process of preparing its financial statements for 2024. Assume that no entries for any depreciation or accounting changes have been
Oregon Company is in the process of preparing its financial statements for 2024. Assume that no entries for any depreciation or accounting changes have been recorded in 2024. The following information related to depreciation of fixed assets is provided to you:
Oregon purchased a machine on July 1, 2022, at a cost of $80,000. The machine has a salvage value of $8,000 and a useful life of 8 years. Oregons bookkeeper recorded straight-line depreciation in 2022 and 2023 but erroneously assumed a useful life of 10 years.
Following all appropriate adjusting/correcting journal entries, the 12/31/24 balance of Accumulated Depreciation-Machine will be:
Select one:
a.$22,500
b.$27,500
c.$31,556
d.$23,400
e.$18,000
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