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(A) A machine that cost $96,000 on January 1, 2015 wasdepreciated by Ava Company using the double declining method. Themachine had a $8,600 residual value and a useful life of 5 Years.On January 1. 2017, the company switched to the straight linemethod.

What is the book value of the machine as of January 1,2017?________

(B) A machine that cost $96,000 on January 1, 2015 was depreciated byAva Company using the straight line method. The machine had noresidual value and a useful life of 8 Years. On January 1. 2017,the company switched to the sum of years’-digits method.

What is the depreciation expense for the year ended December 31,2017 $____

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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A machine that cost $46,000 on January 1, 2015 was depreciatedby Ava Company using the double declining method. The machine had a$2,200 residual value and a useful life of 10 Years. On January 1.2017, the company switched to the straight line method.

What is the depreciation expense for the year ended December 31,2017?

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On January 1, 2010, Powell Company purchased a building andmachinery that have the following useful lives, salvage value, andcosts.

Building, 25-year estimated useful life, $6,000,000 cost,$600,000 salvage value

Machinery, 10-year estimated useful life, $800,000 cost, nosalvage value

The building has been depreciated under the straight-line methodthrough 2014. In 2015, the company decided to switch to thedouble-declining balance method of depreciation for the building.Powell also decided to change the total useful life of themachinery to 8 years, with a salvage value of $40,000 at the end ofthat time. The machinery is depreciated using the straight-linemethod.

Instructions

(a) Prepare the journalentry necessary to record the depreciation expense on the buildingin 2015.

(b) Compute depreciationexpense on the machinery for 2015.

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