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Brief Exercise 22-4 Carla Company changed depreciation methods in 2017 from double-declining-balance to straight-line. Depreciation prior...

Brief Exercise 22-4 Carla Company changed depreciation methods in 2017 from double-declining-balance to straight-line. Depreciation prior to 2017 under double-declining-balance was $95,700, whereas straight-line depreciation prior to 2017 would have been $45,500. Carla’s depreciable assets had a cost of $235,500 with a $36,900 salvage value, and an 7-year remaining useful life at the beginning of 2017. Prepare the 2017 journal entry related to Carla’s depreciable assets (Equipment). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

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Answer #1
$
Cost of asset 235500
Less: Accumulated depreciation 95700
Book value as on 1st Jan 2017 139800
Less: Savage value 36900
Depreciable value of asset 102900
Remaining useful life of asset 7
Depreciatioon for 2017
(102900/7) 14700
Journal entry to be passed in 2017:
Account titles and explanation Debit Credit
Depreciation expense 14700
Accumulated depreciation 14700
(Depreciation recorded)
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