This is for accounting changes and error corrections. Please show all calculations and answers in...
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This is for accounting changes and error corrections. Please show all calculations and answers in excel. Thank you
2. Please trent each of the following situations independently for Kerr, Co in 2018. Assume that Kerr has a 30% tax rate. For each of the items below, prepare ALL necessary journal entries for 2018 related to the information. If no joumal entry is required, write "No Entry Required." a. On January 2, 2016, Kerr bought equipment for $50,000. The equipment is expected to have a useful life of 9 years and a salvage value of $5000. Kerr used the sum-of-the-years' digits method of depreciation in 2016 and 2017, but decided to switch to straight-line depreciation in 2018. b. On January 2, 2014. Kerr bought equipment for $180,000. The equipment is expected to last 15 years with no salvage value. Kerr uses the straight-line method of depreciation. In 2018, Kerr determines that the useful life of the equipment should be 16 years rather than 15 years. c. During 2018, Kerr decided to switch from the LIFO method of valuing inventory to FIFO. If FIFO had been used by Kerr prior to 2018, income would have been $87,000 higher than it was under LIFO
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