Recording Depreciation with a Change in Depreciation Method Pier Exports purchases equipment on January...
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Accounting
Recording Depreciation with a Change in Depreciation Method
Pier Exports purchases equipment on January 1 at a cost of $187,500. The company estimates that there will be no salvage value and that the equipment will have a useful life of 10 years. The company elects to use the double-declining-balance method for the first three years, after which the company will change to the straight-line method of depreciation for the equipment.
Required a. Compute annual depreciation expense for Year 1 through Year 3. b. Prepare the depreciation entry for the end of Year 4. Note: Round your final answers to the nearest whole number.
a.
Year
Annual depreciation expense
Year 1
Answer
Year 2
Answer
Year 3
Answer
b.
Date
Account Name
Dr.
Cr.
Dec. 31, Year 4
Answer
Answer
To record depreciation.
Answer & Explanation
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