Change in Estimate: Depreciation Video Lessons

Concept

# Problem: On January 1, 2006, The Wichita Eagle purchased a new printing press at a cost of $50,000. The estimated residual value is$10,000, and the estimated useful lie is 10 years. The Wichita Eagle uses the straight-line depreciation method. On January 1, 2008, The Eagle’s management estimates that the press only has 3 years of estimated useful remaining. What is the balance in the Accumulated Depreciation account on December 31, 2008?  a. $18,667 b.$21,333 c. $22,000 d.$24,000

###### Problem Details

On January 1, 2006, The Wichita Eagle purchased a new printing press at a cost of $50,000. The estimated residual value is$10,000, and the estimated useful lie is 10 years. The Wichita Eagle uses the straight-line depreciation method. On January 1, 2008, The Eagle’s management estimates that the press only has 3 years of estimated useful remaining. What is the balance in the Accumulated Depreciation account on December 31, 2008

a. $18,667 b.$21,333

c. $22,000 d.$24,000