1. Business
  2. Accounting
  3. 1267...

Question: 1267...

Question details
mated residual value $10,000 1,000Depreciation m In 2020, Bellico increased the estimated residual value to $2,000 five years for financial accounting purposes. Additional information follows and increased the total Expenses other than depreciation and tax...... 25,000 Required a. Provide the 2019 entry for depreciation and the ending 2019 accumulated depreciation bolance. b. Provide the 2020 entry for depreciation and the ending 2020 accumulated depreciation balance. c. Provide the comparative 2019 and 2020 income statements, including disclosures related to the accounting estimate. Pety Corporation has been depreciating equipment over a 10-year life on a straighi-line basis The which costs $24,000, was purchased on January 1, 2016. The equipment has an estimated residual vale $6,000. On the basis of experience since acquisition, management has decided to depreciate the a total life of 14 years instead of 10, with no change in the estimated residual value. The change is to ef tive on January 1, 2020. The annual financial statements are prepared on a comparative basis (2019 and 3020 m presented). 2019 income and 2020 income before depreciation for 2019 and 2020 were $49,.800 and $52,80, respectively. Disregard income tax considerations. Exercise 12-67 Recording and On in Estimated Useful Life LO4 24, 000 Required a. Prepare the journal entries to be recorded in 2016-2019 for annual depreciation. Determine the ending bal- ance in accumulated depreciation on December 31, 2019. b. Prepare the entry to record depreciation expense in 2020, the year of the change. c. Illustrate how the change should be reported on the 2020 balance sheet and income statement, w tstanding are 100,00), -of-the-years-digis tha heninning of 2020, with no change in he companied by the 2019 results for comparative purposes (shares of common stock ou Southern Corporation has been depreciating equipment over a 10-year life using the sum method. The equipment was acquired January 1, 2016, and cost $68,000 (estimated residual value, $13,000).The xercise 12-68
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution