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Question - Thurber Company purchased equipment for 710,000 which was estimated to have a useful life of 10 years with a salvage value of 10,000 at the end of that time. Depreciation has been entered for 7 years on a straight line basis. In 2013, it is determined that the total estimated life should be 15 years with a salvage value of 4,000 at the end of that time.
Instructions:
(a) Prepare the entry (if any) to correct the prior years' depreciation.
(b) Prepare the entry to record depreciation for 2013.
GERONIMO COMPANY
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