Prepare the entry to correct the prior years depreciation

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Reference no: EM13795254

Machinery purchased for $60,000 by Tom Brady Co. in 2010 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5 years on this basis. In 2015, it is determined that the total estimated life should be 10 years with a salvage value of $4,500 at the end of that time. Assume straight-line depreciation.

a) Prepare the entry to correct the prior years’ depreciation, if necessary.

(b) Prepare the entry to record depreciation for 2015.

Reference no: EM13795254

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