An asset that cost $49,500 was being depreciated on a sum-of-the-years'-digits basis over five years with an estimated residual value of $4,500.After the end of the third year, it was decided to change t straight-line depreciation (ignore income taxes).
(a)Give any required entry as of the beginning of year 4.
(b)Give the adjusting entry to record depreciation at the end of the fourth year, taking into account the new decision.

Question

Quizplus · Accepted Answer

The Answer of An asset that cost $49,500 was being depreciated on a sum-of-the-years'-digits basis over five years with an estimated residual value of $4,500.After the end of the third year, it was decided to change t straight-line depreciation (ignore income taxes).
(a)Give any required entry as of the beginning of year 4.
(b)Give the adjusting entry to record depreciation at the end of the fourth year, taking into account the new decision.

An Asset That Cost $49,500 Was Being Depreciated on a Sum-Of-The-Years'-Digits