Ac557 P22-6

Problem:P22-6, Accounting substitute and Error Analysis phone kris:AC557 Intermediate Accounting III On December 31, 2010, in betterment the books were closed, the management and accountants of Madrasa Inc. reach out the following determinations about collar depreciable pluss. 1. Depreciable plus A was purchased January 2, 2007. It origin in ally equal$540,000 and, for wear and tear purposes, the straight-line system was in the beginning chosen. The plus was originally expected to be profitable for10 days and travel on a zipper keep value. In 2010, the close was made to change the depreciation system from straight-line to sum-of-years-digits, and the estimates relating to serviceable vivification and preserve value remained unchanged. 2. Depreciable plus B was purchased January 3, 2006. It originally represent $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 ease value. In 2010, the decision was made to lose weight 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 toll 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 information: 1. Income in 2010 before depreciation expense amount to$400,000 2. dispraise expense on assets early(a) than A, B, and C totaled$55,000 in 2010. 3. Income in 2009 was reported at$370,000 4. Ignore all income evaluate effects. 5.100,000 shares of general stock were nifty in 2009 and 2010. Instructions: (a) arrange all necessary entries in 2010 to record these determinations. (1)Depreciation Expense94,500 Accumulated...If you essential to hitch a full essay, come out it on our website: Ordercustompaper.com

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