Victory Stables purchased new equipment for their barn on January 1, 2012. The new equipment had a cost of $100,000, estimated salvage of $20,000 and an expected useful life of 10 years. On January 1, 2013 the equipment is not working out to be as durable as first thought so management has now revised its useful life down to 5 years. Prepare the journal entry for the December 31, 2013 amortization.

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The Answer of Victory Stables purchased new equipment for their barn on January 1, 2012. The new equipment had a cost of $100,000, estimated salvage of $20,000 and an expected useful life of 10 years. On January 1, 2013 the equipment is not working out to be as durable as first thought so management has now revised its useful life down to 5 years. Prepare the journal entry for the December 31, 2013 amortization.

Victory Stables Purchased New Equipment for Their Barn on January