Explore BrainMass

Explore BrainMass

    Bickner Company: Depreciation Methods

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Bickner Company changed depreciation methods in 2008 from double-declining-balance to straight-line. Depreciation under double-declining-balance was $90,000, whereas straight-line depreciation prior to 2008 would have been $50,000. Bickner's depreciable asset had a cost of $250,000 with a $50,000 salvage value, and an 8-year remaining useful life at the beginning of 2008. Prepare the 2008 journal entries, if any, related to Bickner's depreciable asset.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:49 pm ad1c9bdddf

    Solution Preview

    1. Compute the difference in the total depreciation prior to 2008
    Double declining: 90,000
    Straight ...

    Solution Summary

    Journal entires related to depreciable assets are prepared.