Prepare the journal entry to record the depreciation expense

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Reference no: EM132793039

Question - Aya Corporation purchased equipment costing $100,000 on January 1, 2018. At that time the useful life of the equipment was estimated to be 12 years and the residual value was estimated to be $6500. Depreciation up to December 31, 2019 has been recorded using the straight-line method and the company operates on a calendar year basis. On January 1, 2020, the estimated useful life was revised to a total of only 10 years and the residual value was revised to $7,000

Prepare the journal entry to record the depreciation expense for 2020.

Assume Aya was able to sell the equipment for $120,000 on December 31, 2020. Represent the disposal of the equipment.

Reference no: EM132793039

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