A plant asset is acquired by a business on January 1, 2016, for $100,000. The asset's estimated residual value is $10,000 and its estimated life is 5 years. Management chooses to use straight-line depreciation.
On January 1, 2018, management revises the total useful life to 8 years and the residual value to $5,000.
Required:
1. Compute the balance in Accumulated Depreciation on January 1, 2018.
2. Compute the Depreciation Expense for the year ending December 31, 2018.
3. Compute the balance in Accumulated Depreciation on December 31, 2018.
4. Prepare the adjusting journal entry on December 31, 2018 for the year. Omit the explanation.

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The Answer of A plant asset is acquired by a business on January 1, 2016, for $100,000. The asset's estimated residual value is $10,000 and its estimated life is 5 years. Management chooses to use straight-line depreciation.
On January 1, 2018, management revises the total useful life to 8 years and the residual value to $5,000.
Required:
1. Compute the balance in Accumulated Depreciation on January 1, 2018.
2. Compute the Depreciation Expense for the year ending December 31, 2018.
3. Compute the balance in Accumulated Depreciation on December 31, 2018.
4. Prepare the adjusting journal entry on December 31, 2018 for the year. Omit the explanation.

A Plant Asset Is Acquired by a Business on January