2. Changes in Depreciation Methods and Estimates On January 1, 2013, Sauder Company purchased a...
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2. Changes in Depreciation Methods and Estimates On January 1, 2013, Sauder Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage value Machinery, 10-year estimated useful life, $500,000 cost, no salvage value The building has been depreciated under the double-declining balance method through 2017. In 2018, the company decided to switch to the straight line method of depreciation for the building. The depreciation expenses under double-declining balance totaled 750,000 for the 2013 to 2017 period. Sauder also decided to change the total useful life of the machinery to 8 years, with a salvage value of $25,000 at the end of that time. The machinery is depreciated using the straight-line method. Instructions Prepare the journal entry necessary to record the depreciation expense on the building in 2018. (a) (b) Compute depreciation expense on the machinery for 2018
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