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In Year 3, Cougar Co. purchased the equipment indicated in the situations below. The company...

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Accounting

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In Year 3, Cougar Co. purchased the equipment indicated in the situations below. The company has a December 31 year-end and records depreciation using the straight-line method. A. On January 1, Year 3, Cougar added an engine to a backhoe at a cost of $65,000, which extended the estimated useful life of the asset by five years. The original equipment, purchased January 1, Year 1, cost $120,000 and had an estimated useful life of 12 years. Record the entry needed on December 31, Year 3. Assume that Cougar records depreciation expense annually. B. Cougar purchased a tractor on March 1, Year 3, for $240,000 and the estimated useful life was five years. Cougar recorded $48,000 for depreciation expense in Year 3. Record the entry upon discovery of the error in Year 4. Assume that Cougar records depreciation expense monthly. c. Cougar purchased a snowmobile on October 1, Year 3 , for $19,000, with a $1,000 salvage value, and the estimated useful life was three years. Due to an oversight, the company failed to record depreciation expense in Years 3 and 4 . Record the entry needed on June 30 , Year 4, when the oversight was discovered. Assume that Cougar records depreciation expense monthly

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