Ac557 P22-6

Problem:P22-6, Accounting Change and Error Analysis recollect line:AC557 Intermediate Accounting III On declination 31, 2010, in advance the books were closed, the management and accountants of Madrasa Inc. make the pursuance determinations about troika depreciable assets. 1. Depreciable asset A was purchased January 2, 2007. It origin in all(a)y terms$540,000 and, for depreciation purposes, the straight-line system was originally chosen. The asset was originally expected to be profitable for10 days and collapse on a zero keep value. In 2010, the decision was made to change the depreciation system from straight-line to sum-of-years-digits, and the estimates relating to useful bearing and preserve value remained unchanged. 2. Depreciable asset B was purchased January 3, 2006. It originally cost $180,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for15 years and have a zero sti ll value. In 2010, the decision was made to shorten the total smell of this asset to9 years and to estimate the salvage value at$3,000 3. Depreciable asset C was purchased January 5, 2006. The assets original cost was $160,000 and this fall was completely outgod in 2006.

This extra asset has a 10-year useful lifespan and no salvage value. The straight-line method was chosen for depreciation purposes. extra data: 1. Income in 2010 before depreciation expense amount to$400,000 2. Depreciation expense on assets other than A, B, and C add up$55,000 in 2010. 3. Income in 2009 was reported at$370,000 4. Ignore all income t ax effects. 5.100,000 shares of general st! ock were outstanding in 2009 and 2010. instructions: (a) Prepare all necessary entries in 2010 to record these determinations. (1)Depreciation Expense94,500 Accumulated...If you inherent to get a full essay, order it on our website: BestEssayCheap.com

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