Question

On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000 salvage value. On December 31, 2022, the company estimated that the equipment's remaining useful life was 10 years, with a revised salvage value of $5,000. Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Depreciation Expense 74,500 5 TAccumulated Depreciation Equipment 4,500 Your answer is correct. Prepare the journal entry to record depreciation on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation Depreciation Expense 9000 Accumulated Depreciation Equipment 19000 * Your answer is incorrect. Try again. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation 5350 Your answer is partially correct. Try again. Prepare the journal entry to record depreciation on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Depreciation Expense Accumulated Depreciation-Equipment

Answer 1

Net book value on December 31, 2021 = 90000 - 4500+9000*2 = $67,500

Revised Annual depreciation (67500 - 5000)/7.5 = $8,333

Account Titles and Explanation	Debit	Credit
Depreciation Expense	$8,333
Accumulated Depreciation - Equipment		$8,333