P11.6 The following data relate to the Plant Assets account of Keller Inc. at December 31, 2019:

		A		B		C		D
Original cost		$46,000		$58,000		$68,000		$73,000
Year purchased		2014		2015		2016		2017
Useful life		10 years		17,000 hours		15 years		10 years
Residual value		$3,900		$4,450		$8,000		$4,700
Depreciation method		straight-line		activity		straight-line		double-declining
Accumulated depreciation through 2019		$21,050		$31,600		$12,000		$26,280

Note: In the year an asset is purchased, Keller does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Keller takes a full year's depreciation on the asset.

The following transactions occurred during 2020:

• 1. On May 5, Asset A was sold for $16,500 cash. The company's bookkeeper recorded this retirement as follows:

  Cash		16,500
  Asset A				16,500

• 2. On December 31, it was determined that Asset B had been used 3,200 hours during 2020.
• 3. On December 31, before calculating depreciation expense on Asset C, Keller management decided that Asset C's remaining useful life should be nine years as of year end.
• 4. On December 31, it was discovered that a piece of equipment purchased in 2019 had been expensed completely in that year. The asset cost $31,000, had a useful life of 10 years when it was acquired, and had no residual value. Management has decided to use the double-declining-balance method for this asset, which can be referred to as Asset E. Ignore income taxes.

Instructions

a. Prepare any necessary adjusting journal entries required at December 31, 2020, as well as any entries to record depreciation for 2020. Round all amounts to the nearest dollar.

b. As an owner of Keller Inc., do you have any concerns with respect to the bookkeeper's work?