Compute depreciation expense on the equipment

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Question - On January 1, 2017 Nash Co. purchased a building and equipment that have the following useful lives, salvage values and costs

Building- 40 years estimated useful life, $48000 salvage value, $814400 cost

Equipment- 12 years estimated useful life, 10400 salvage value, 95000 cost

The building have been depreciated under the double-declining balance method through 2020. In 2021 the company decided to switch to the straight-line method of depreciation. Nash also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line method.

Required -

(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021.

(b) Compute depreciation expense on the equipment for 2021.

Reference no: EM133077710

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