Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oliver inc. acquired the following assets in janua

Oliver Inc. acquired the following assets in January 2017: Equipment: estimated useful...

80.2K

Verified Solution

Question

Accounting

Oliver Inc. acquired the following assets in January 2017:

Equipment: estimated useful life, 5 years; residual value, $15,000 $470,000
Building: estimated useful life, 30 years; no residual value $720,000

The equipment was depreciated using the double-declining-balance method for the first three years for financial reporting purposes. In 2020, the company decided to change the method of calculating depreciation for the equipment to the straight-line method, because of a change in the pattern of benefits received (but no change was made in the estimated useful life or residual value). It was also decided to change the buildings total estimated useful life from 30 years to 40 years, with no change in the estimated residual value. The building is depreciated using the straight-line method.

(a) Prepare the journal entry to record depreciation expense for the equipment in 2020. (Ignore tax effects.)

(b) Prepare the adjusting entries.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Time Value??Personal Finance Problem?? Misty needs to have ?$15 comma 00015,000 in 55 years to fulfill her goal of...

Biology
1.2K views

Question is: A man produces his alleged girlfriend’s medical documents which include a diagnosis of “vulvovaginitis”...

Biology
1.2K views

List the 10 essential Public Health Services.

Biology
1.2K views

What is the function of GTP in the Kreb s Cycle a An oxidizer to...

Physics
1.2K views

I V characteristics of solar cell lies in third quadrant of co ordinate axes y...

Basic Math
1.2K views

Goro Unoji's job pays him $14.75 an hour for a 40-hour week. He estimates his...

Statistics
1.2K views

In a survey 1000 adults in a certain country were asked how many hours they...

Accounting
1.2K views

Consider the following: Cash in Bank checking account of $17800, Cash on hand of...

Accounting
1.2K views

Barth Company reports the following year-end account balances at December 31, 2016. Prepare the 2016...

Accounting
1.2K views

Oirect Maleris an Oiret Labu Vaiance Analysis Best-auce to per r ar factures aucets r18...

Accounting
1.2K views

Rebel Technology mantiene sus registros utilizando la contabilidad en efectivo. Durante el ao, la empresa...

Finance
1.2K views

Raymond Supply, a national hardware chain, is considering purchasing a smaller chain, Strauss & Glazer...