Alteran Corporation purchased office equipment for $18 million in 2015. The equi

Question

Alteran Corporation purchased office equipment for $18 million in 2015. The equipment is being depreciated over a the sum-of-the -years digits method. The residual value is expected to be $700,000. At the beginning of 2018, Alteran decided to change to the straight-line depreciation method for this equipment 10-year lie using Required Prepare the journal entry to record depreciation for 2018. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars) Journal entry worksheet Record depreciation expense entry for 2018 Note: Enter debts before creda Record eetay

Explanation / Answer

Sum of years' digits = 10*(10+1)/2= 55 Accumulated depreciation will 2017 = (1800000-700000)/55*27= $540000 Debit Credit 1 Depreciation expense 80000 =(1800000-700000-540000)/7         Accumulated depreciation-Equipment 80000

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