Explain the residual value


Mecca Concrete purchased a mixer on January 1, 2011, at a cost of $75,000. Straight-line depreciation for 2011 and 2012 was based on an estimated 5 year life and a $0 estimated residual value. In 2013, Meca revised its estimates and now believes the mixer will have a total service life of 8 years and that the residual value will be $5000.Provide the necessary journal entry for the year 2013.

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Accounting Basics: Explain the residual value
Reference No:- TGS0702817

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