(TANGIBLE ASSETS) On January 1, 2017, the Morgantown Company purchased equipment with an original cost of...

(TANGIBLE ASSETS) On January 1, 2017, the Morgantown Company purchased equipment with an original cost of $30,000. It estimates a 10 year-life with no salvage value. The company uses straight-line depreciation method. However during year 3 (year 2020), Morgantown Company estimates that it will use the machine for an additional 9 years.

Required: Compute the revised annual depreciation and prepare the journal entries on December 31, 2020.

Expert Solution

ekkarill92 answered 2 years ago

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