Home » Changes in depreciation methods, estimates. On January 1, 2003, Sauder Company purchased a building and machinery that have the following useful…

Changes in depreciation methods, estimates. On January 1, 2003, Sauder Company purchased a building and machinery that have the following useful…

Changes in depreciation methods, estimates.On January 1, 2003, Sauder Company purchased a building and machinery that have the following useful lives, salvage value, and costs.Building, 25-year estimated useful life, $4,000,000 cost, $400,000 salvage valueMachinery, 10-year estimated useful life, $500,000 cost, no salvage valueThe building has been depreciated under the straight-line method through 2007. In 2008, the company decided to switch to the double-declining balance method of depreciation for the building. Sauder also decided to change the total useful life of the machinery to 8 years, with a salvage value of $25,000 at the end of that time. The machinery is depreciated using the straight-line method.Instructions(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2008.(b) Compute depreciation expense on the machinery for 2008.
Changes in depreciation methods, estimates.On January 1, 2003, Sauder Company purchased a building and machinery that have thefollowing useful lives, salvage value, and costs.Building, 25-year…







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