On January 1, 2010, Arlene Company bought a machine for $60, 000.It was then estimated that the useful life of the machine would be eight years with a salvage value of $8, 000.On January 1, 2014, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2000.The company used straight-line depreciation.
Required:
a. If an adjusting entry is necessary on January 1,2014 , prepare it.
b. Compute depreciation expense for 2014.

Question

On January 1, 2010, Arlene Company bought a machine for $60, 000.It was then estimated that the useful life of the machine would be eight years with a salvage value of $8, 000.On January 1, 2014, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2000.The company used straight-line depreciation.
Required:
 a. If an adjusting entry is necessary on January 1,2014 , prepare it.
b. Compute depreciation expense for 2014.

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Arlene Company bought a machine for $60, 000.It was then estimated that the useful life of the machine would be eight years with a salvage value of $8, 000.On January 1, 2014, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2000.The company used straight-line depreciation.
Required:
 a. If an adjusting entry is necessary on January 1,2014 , prepare it.
b. Compute depreciation expense for 2014.

On January 1, 2010, Arlene Company Bought a Machine for $60