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
FREE Expert Solution
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
Frequently Asked Questions
What scientific concept do you need to know in order to solve this problem?
Our tutors have indicated that to solve this problem you will need to apply the Change in Estimate: Depreciation concept. You can view video lessons to learn Change in Estimate: Depreciation. Or if you need more Change in Estimate: Depreciation practice, you can also practice Change in Estimate: Depreciation practice problems.
What is the difficulty of this problem?
Our tutors rated the difficulty ofOn January 1, 2006, The Wichita Eagle purchased a new printi...as medium difficulty.