Depreciation-change in estimate machinery purchased for


1. Depreciation-Change in Estimate Machinery purchased for $52,000 by Carver Co. in 2006 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2011, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation.

(a) Prepare the entry to correct the prior years' depreciation, if necessary.

(b) Prepare the entry to record depreciation for 2011.

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Accounting Basics: Depreciation-change in estimate machinery purchased for
Reference No:- TGS01505555

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