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Refer to the facts in QS 10-3. Assume that the Cerritos Band uses straight line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations, this equipment will last only a total of three years. The salvage value remains unchanged. Compute the revised depreciation for both the second and third years.In QS 10-3, On January 2, 2013, the Cerritos Band acquires sound equipment for concert performances at a cost of $ 65,800. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $ 2,000. During year 2013, the band performs 45 concerts. Compute the year 2013 depreciation using the straight line method.
Identifying how the right -of-use model will impact financial reporting
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