Ac557 P22-6

Problem:P22-6, Accounting Change and Error Analysis ring line:AC557 Intermediate Accounting III On declination 31, 2010, in advance the books were closed, the management and accountants of Madrasa Inc. make the next determinations about troika depreciable assets. 1. Depreciable asset A was purchased January 2, 2007. It origin in each(prenominal)y speak to$540,000 and, for depreciation purposes, the straight-line system was originally chosen. The asset was originally expected to be profitable for10 days and widen on a zero keep value. In 2010, the determination was made to change the depreciation system from straight-line to sum-of-years-digits, and the estimates relating to useful carriage storyspan 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 a nd have a zero lay aside value. In 2010, the decision was made to shorten the total life 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 bar was all in all outgod in 2006. This extra asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. additive 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 tax effects. 5.100,000 shares of general stock were outstanding in 2009 and 2010. operating instructions: (a) Prepare all necessary entries in 2010 to record these determinations. (1)Depreciation Expense94,500 Accumulated...If you requirement to get a full essay, order it on our website: BestEssayCheap.com

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