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Hi,
I’m doing the SIM for the AICPA sample exampe for FAR.
Could any other show me on this is the JE?On January 1, year 1, WSM Co. purchased office furniture at a cost of $90,000. Book depreciation was calculated using the double-declining balance method over an estimated useful life of 10 years for the first three years after purchase, and accumulated depreciation at December 31, year 3, was $43,920. At the end of year 3, the estimated useful life of the furniture was changed from 10 to 15 years, effective January 1, year 4, and the depreciation method was changed to the straight-line method with no salvage value.
Prepare the entry, if any, required to record WSM’s depreciation expense for year 4.
ANSWER:
Depreciation expense
3,840Accumulated depreciation
3,840
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