Lugar Company purchased a piece of machinery for $19,500 onJanuary 1, 2014, and has been depreciating the machine using thesum-of-the-years'-digits method based on a five-year estimateduseful life and no salvage value. On January 1, 2016, Lugar decidedto switch to the straight-line method of depreciation. The salvagevalue is still zero and the estimated useful life is changed to atotal of six years from the date of purchase. Ignore incometaxes.
Prepare the appropriate journal entry, if any, to record theaccounting change
Prepare the journal entry to record depreciation for 2016
Lugar Company purchased a piece of machinery for $19,500 onJanuary 1, 2014, and has been depreciating the machine using thesum-of-the-years'-digits method based on a five-year estimateduseful life and no salvage value. On January 1, 2016, Lugar decidedto switch to the straight-line method of depreciation. The salvagevalue is still zero and the estimated useful life is changed to atotal of six years from the date of purchase. Ignore incometaxes.
| Prepare the appropriate journal entry, if any, to record theaccounting change Prepare the journal entry to record depreciation for 2016 |
Related questions
Lugar Company purchased a piece of machinery for $33,000 onJanuary 1, 2014, and has been depreciating the machine using thesum-of-the-years'-digits method based on a five-year estimateduseful life and no salvage value. On January 1, 2016, Lugar decidedto switch to the straight-line method of depreciation. The salvagevalue is still zero and the estimated useful life is changed to atotal of six years from the date of purchase. Ignore incometaxes. |
| Required: |
| 1. | Prepare the appropriate journal entry, if any, to record theaccounting change. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.) |
