80.2K

Verified Solution

Link Copied!

Exercise 11-16 Machinery purchased for $39,200 by Monty Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $4,700 at the end of that time. Assume straight- line depreciation and that Monty Corp. uses IFRS for financial statement purposes. Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Repeat part (b) assuming Monty Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of so. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $300 at the end of that time. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation ation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Repeat part (b) assuming Monty Corp. uses the double-declining-balance method of depreciation. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 3 used

Answer & Explanation Solved by verified expert

See Answer