Recording and Reporting a Change in Estimated Useful Life
Vear and Year are presented Income before depreciation for Year and Year was $ and $ respectively. Ignore income tax
Required
a Prepare the journal entries to be recorded in Year through Year for annual depreciation
b Determine the ending balance in accumulated depreciation on December of Year through Year
c Prepare the entry to record depreciation expense in Year the year of the change.
he change should be reported on the Year balance sheet and income statement, which are accompanied by
Note: results for comparative purposes. Include the earnings per share disclosure. Shares of common stock outstanding are
b
Accumulated depreciation, December Year $
c
d
Less: Accumulated depreciation
Earnings per share Year $
$
$
Earnings pershare Year
$ $
Result
