A large lathe was bought on January 1, 2019 for $15,000,000. It was expected to last for 12 years and have a residual value of $300,000. The company uses straight-line depreciation. At the beginning of 2024, the remaining useful life of the lathe was revised to be four more years (for nine years in total). Management also felt that all equipment should now be depreciated using the declining balance method at a 25% rate. The company has a December 31 year-end.
Required: Prepare the entries to record depreciation for 2019 and 2024.

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The Answer of A large lathe was bought on January 1, 2019 for $15,000,000. It was expected to last for 12 years and have a residual value of $300,000. The company uses straight-line depreciation. At the beginning of 2024, the remaining useful life of the lathe was revised to be four more years (for nine years in total). Management also felt that all equipment should now be depreciated using the declining balance method at a 25% rate. The company has a December 31 year-end.
Required: Prepare the entries to record depreciation for 2019 and 2024.

A Large Lathe Was Bought on January 1, 2019 for $15,000,000