Alteran Corporation purchased office equipment for $2.2 million in 2015. The equ

Question

Alteran Corporation purchased office equipment for $2.2 million in 2015. The equipment is being depreciated over a 8-year life using 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. Required: Prepare the journal entry to record depreciation for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record depreciation expense entry for 2018. Note: Enter debits before credits. Event General Journal Debit Credit epreciation expense

Explanation / Answer

Accumulated depreciation at the beginning of 2018 = (2200000-700000)/36*21= 875000 Book value at the beginning of 2018 = 2200000-875000= 1325000 1 Depreciation expense 265000 =1325000/5            Accumulated depreciation-Equipment 265000

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