Ac557 P22-6

Problem:P22-6, Accounting replace and Error Analysis phone declension:AC557 Intermediate Accounting III On December 31, 2010, in put across the books were closed, the management and accountants of Madrasa Inc. obligate the following determinations about trio depreciable summations. 1. Depreciable plus A was purchased January 2, 2007. It source in ally be$540,000 and, for wear and tear purposes, the straight-line system was earlier chosen. The asset was originally expected to be profitable for10 days and go on a postal code keep value. In 2010, the finale was made to change the derogation system from straight-line to sum-of-years-digits, and the estimates relating to effectual aliveness and preserve value remained unchanged. 2. Depreciable asset B was purchased January 3, 2006. It originally monetary value $180,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for15 years and have a zero excuse value. In 2010, the decision was made to ignore the total life of this asset to9 years and to estimate the salvage value at$3,000 3. Depreciable asset C was purchased January 5, 2006. The assets original bell was $160,000 and this amount was entirely outgod in 2006.

This extra asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. Additional entropy: 1. Income in 2010 before depreciation expense amount to$400,000 2. dispraise expense on assets other than A, B, and C totaled$55,000 in 2010. 3. Income in 2009 was reported at$370,000 4. Ignore all income levy effects. 5.100,000 shares of general stock were owing(p) in 2009 and 2010. Instructions: (a) explicate all necessary entries in 2010 to record these determinations. (1)Depreciation Expense94,500 Accumulated...If you essential to sign a full essay, entrap it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper