Assume that Banker Company purchased a new machine on January 1, 2014, for $96,000. The machine has an estimated useful life of nine years and a residual value of $6,000. Banker has chosen to use the straight-line method of depreciation. On January 1, 2016, Banker discovered that the machine would not be useful beyond December 31, 2019, and estimated its value at that time to be $4,000.
REQUIRED:
1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2014 to 2019.
2. Was the depreciation recorded in 2014 and 2015 wrong? If so, why was it not corrected?

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The Answer of Assume that Banker Company purchased a new machine on January 1, 2014, for $96,000. The machine has an estimated useful life of nine years and a residual value of $6,000. Banker has chosen to use the straight-line method of depreciation. On January 1, 2016, Banker discovered that the machine would not be useful beyond December 31, 2019, and estimated its value at that time to be $4,000.
REQUIRED:
1. Calculate the depreciation expense, accumulated depreciation, and book value of the asset for each year 2014 to 2019.
2. Was the depreciation recorded in 2014 and 2015 wrong? If so, why was it not corrected?

Assume That Banker Company Purchased a New Machine on January