Machinery purchased for $74,880 by Carver Co. in 2008 was originally estimated to have a life of 8 years with a salvage value of $5,760 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2013, it is determined that the total estimated life should be 10 years with a salvage value of $6,480 at the end of that time. Assume straight-line depreciation.
| (a) |
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Prepare the entry to correct the prior years' depreciation, if necessary. |
| (b) |
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Prepare the entry to record depreciation for 2013. |
Image text transcribed for accessibility Machinery purchased for $74,880 by Carver Co. in 2008 was originally estimated to have a life of 8 years with a salvage value of $5,760 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2013, it is determined that the total estimated life should be 10 years with a salvage value of $6,480 at the end of that time. Assume straight-line depreciation.