On January 1, 2005, 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 value. Machinery: 10-year estimated useful life, $500,000 cost, no salvage value. The building has been depreciated under the straight line method through 2009. In 2010, the company decided to switch to 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 $10,000 at the end of that time. The machinery is depreciated using straight line method.,Respected Sir, I would like to request my answer with step by step solutions.,I am sorry forgot to tell you the main questions that has to be answered: 1) prepare the journal entry necessary to record the depreciation expense on the building in 2010. 2)compute depreciation expense on the machinery for 2010.
Paper#4977 | Written in 18-Jul-2015Price : $25