Essay
On January 1, 20x1, CR purchased a special machine for use in the business that cost $110,000.The estimated useful life was 10 years with no residual value.
Three separate and independent cases, involving accounting changes with respect to the machine, are given.For each case, two dates are specified upon which you are to give any required entry (if no entry is required, so state).Disregard income taxes.
CASE A: At the end of the fifth year, it was discovered that no depreciation had ever been recorded.Assume the straight-line method is used and that the adjusting entries for 20x5 have not been made.
(1)Entry at the date the omission was discovered:
(2)Entry at December 31, 20x5, the end of the accounting period:
CASE B: At the end of the fifth year, the estimated life was changed from 10 to 15 years.Assume th straight-line method is used and that the adjusting entries for 20x5 have not been made.
(1)Entry at the date the decision to change was made:
(2)Entry at December 31, 20x5, the end of the accounting period:
CASE C: At the end of the fifth year, the company changed from the straight-line depreciation method to sum-of-the-years'-digits depreciation method.The adjusting entries for 20x5 have not bee made.
(1)Entry at the date of the change.
(2)Entry at December 31, 20x5 the end of the accounting period.
Correct Answer:

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CASE A:
CASE B:
(1)No entry is required...View Answer
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Correct Answer:
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(1)No entry is required...
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