Gerald Englehart Industries: Change in Estimate - Depreciation
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Change in Estimate?Depreciation) Gerald Englehart Industries changed from the doubledeclining balance to the straight-line method in 2008 on all its plant assets. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2005, had an original cost of $1,600,000, with a $100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was $270,000 in 2007 and $300,000 in 2008.
Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2007 and 2008.
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Solution Summary
The solution examines the change in estimates for Gerald Englehart Industries. The Depreciation is analyzed.
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