An asset that cost $66,000 was being depreciated on a SYD basis over 5 years with an estimated residual value of $6,000.After the end of the third year,it was decided to change to straight-line depreciation.What change would be made to the balance of accumulated depreciation?

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Quizplus · Accepted Answer

The accumulated depreciation after 3 years using SYD is $36,000. The remaining book value is $30,000 ($66,000 - $36,000). With a new straight-line depreciation over 2 years (remaining life), the annual depreciation is $12,000. The accumulated depreciation needs to be adjusted to reflect this, requiring a $12,000 debit to reduce it.

An Asset That Cost $66,000 Was Being Depreciated on a SYD