At the beginning of 2012, Lindy Weink, the new controller of Lafreniere Inc., reviewed the expected useful

At the beginning of 2012, Lindy Weink, the new controller of Lafrenière Inc., reviewed the expected useful life and residual value of two of the company's machines and proposed changes as follows:

Instructions
(a) Calculate the annual depreciation for each asset using the straight-line method and the original useful life and residual value.
(b) Calculate the accumulated depreciation and carrying amount of each asset on December 31, 2012.
(c) If the company accepts Lindy's proposed changes in useful life and residual value, will depreciation expense for each asset in 2012 be higher or lower than depreciation expense in 2011? Explain.

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Useful Life (in years) Residual Value Date Acquired Cost Oriial Proosed Oriinal Proposed $62,000 Jan. 1,2002 Jan. 1, 2010 25 $800,000 $120,000 20 $40,000 s 5,000 3,600