Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain how you got the answer Machinery purchased for $49.400 by Indigo Corp. on January 1,2015 , was originally estimated to have an 8

please explain how you got the answer
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Machinery purchased for $49.400 by Indigo Corp. on January 1,2015 , was originally estimated to have an 8 -year useful life with a residual value of $3,000. Depreciation has been entered for five years on this basis. In 2020 , it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $4,000 at the end of that time. Assume straight-line depreciationand that indigo Corp, uses IFRS for financial statement purposes. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are outomaticolly indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Repeat part (b) assuming indigo Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years. with a salvage value of $100 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. Round answers to O decimal places, e.g. 5.275.) Repeat part (b) assuming Indigo Corp. uses the double-declining-balance method of depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account t and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: Vasuhi M

1st Edition

6206150747, 978-6206150749

More Books

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago