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Question - Via Rio Co. purchased equipment for $1,000,000 which was estimated to have a useful life of 15 years with a salvage value of $25,000 at the end of that time. Depreciation has been entered for 5 years on a straight-line basis. In 2018, it is determined that the total estimated life should be 10 years with no salvage value 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 2018.
State government within 30 days of the end of fiscal year 2018. What entry, if any, would St. Olaf's accounting department make at the end of 2018?
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