Can you recalculate the depreciation and change entries from the previous year?, assignment help

You  have just landed an accounting position with a national telecommunications  company. Because this is your first job you are eager to please your co-workers  and your supervisor, who works closely with the controller. Your supervisor has  just paid you a visit, and she told you that the controller is concerned that  profits for the last fiscal year are much less than profits for the preceding  five years. The controller has asked that depreciation on a machine purchased  at the beginning of last year be recalculated. The machine has a five-year  useful life and is depreciated using the straight-line method. The controller  has asked that the machine be depreciated over a ten-year useful life. Your  supervisor contends that the “depreciation thing” really doesn’t matter because  the machine has already been paid for. In addition, your supervisor gives you  an adjusting journal entry to correct what she calls “expense transfers.” This  entry transfers items originally recorded as repairs and maintenance to capital  assets.

Address  the following:

  1. Do  you agree with the supervisor regarding the change in the estimated useful life  of the machine? Why or why not?
  2. Are  you going to recalculate the depreciation and change the entry? Why or why not?
  3. What  is the proper accounting treatment for: (a) repairs and maintenance and
        (b) plant assets?
  4. What  is your supervisor trying to accomplish with the suggested “expense transfers”  entry? What would be your course of action regarding the suggested entry?