21). April 1, 2018, LLM Shop purchased a machine asset costing $2,000,000 with a salvage value of $200,000 and an estimated life of 5 years using the sum-of-the-year method. January 1, 2020, LLM decided to revise estimated remaining life of 4 years and the salvage value of $0. January 1, 2021, LLM decided to change the depreciation method to straight-line method. March 31, 2022, LLM decided to sell this plant asset for $239,000. Required: (1). Prepare the depreciation entry for 2018/12/31. (2). Prepare the depreciation entry for 2019/12/31. (3). Prepare the depreciation entries for 2020/12/31. (4). Prepare the depreciation entries for 2021/12/31. (5). Prepare the sale entries for 2022/3/31

21). April 1, 2018, LLM Shop purchased a machine asset costing $2,000,000 with a salvage value of $200,000 and an estimated life of 5 years using the sum-of-the-year method. January 1, 2020, LLM decided to revise estimated remaining life of 4 years and the salvage value of $0. January 1, 2021, LLM decided to change the depreciation method to straight-line method. March 31, 2022, LLM decided to sell this plant asset for $239,000. Required: (1). Prepare the depreciation entry for 2018/12/31. (2). Prepare the depreciation entry for 2019/12/31. (3). Prepare the depreciation entries for 2020/12/31. (4). Prepare the depreciation entries for 2021/12/31. (5). Prepare the sale entries for 2022/3/31

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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