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Question
Champion Company purchased and installed carpet in its new general offices on March 31 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value.
a. Journalize the March 31 purchase of the new carpet.
b. Journalize the December 31 adjusting entry for the partial-year depreciation of the carpet, assuming that Champion Company uses the straight-line method.
Answer
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