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Machinery purchased for $72,000 by Oriole Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,800 at the end of that time. Depreciation has been entered for 5 years
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14 votes
14 votes
Machinery purchased for $72,000 by Oriole Co. in 2016 was originally estimated to have a life of 8 years with a salvage value of $4,800 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2021, it is determined that the total estimated life should be 10 years with a salvage value of $5,400 at the end of that time. Assume straight-line depreciation.

Prepare the entry to correct the prior years' depreciation, if necessary.

User Lucas Andrade
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1 Answer

10 votes
10 votes

Answer:

No journal entry would be recorded

Step-by-step explanation:

The journal entry is shown below:

No journal entry would be recorded for recognizing the prior year depreciation

So no journal entry would be passed for the same

Hence, the same would be relevant

User Glutorange
by
3.1k points
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