Change in Estimate—Depreciation

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June 7th, 2024

E22-11 (Change in Estimate—Depreciation) Peter M. Dell Co. purchased equipment for $510,000 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 2008, it is determined that the total estimated life should be 15 years with a salvage value of $5,000 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 2008.

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