San Diego State University Operations And Supply Chain Management Assignment Help - Equipment

Question - Depreciation Changes On January 1, 2006, McElroy Company purchased a building and equipment
that have the following useful lives, salvage values, and costs.
Building, 40-year estimated useful life, $50,000 salvage value, $1,200,000 cost
Equipment, 12-year estimated useful life, $10,000 salvage value, $130,000 cost
The building has been depreciated under the double-declining balance method through 2009. In
2010, the company decided to switch to the straight-line method of depreciation. McElroy also
decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,000 at
the end of that time. The equipment is depreciated using the straight-line method.
Instructions
(a) Prepare the journal entry(ies) nec ...Read More essary to record the depreciation expense on the building in
2010.
(b) Compute depreciation expense on the equipment for 2010. ...Read Less

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