Clausen Corp. purchased a machine for $100,000 on 1/1/14. At that time, it estimated the machine would have a 5-year useful life and a $6,000 salvage value.
Clausen revised several estimates related to this machine. It determined the new total life of the machine to be 8 years and the revised salvage value to be $2,000.
A. What should be the "Accumulated Depreciation" account balance on 12/31/15? (Hint: This is before the estimate revisions are taken into account.)
On 1/1/16, taking into account the estimate revisions, what is the remaining depreciable cost of the machine?
On 1/1/16, taking into account the estimate revisions, what is the remaining depreciable cost of the machine?
On 1/1/16, taking into account the estimate revisions, what is the remaining depreciable cost of the machine?