Lindy Weink, the new controller of Lafreni?re Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2021. (Depreciation for 2021 has not been recorded yet.) Her findings are as follows:

After discussion, management agrees to accept Lindy?s proposed changes. All assets are depreciated by the straight-line method. Lafreni?re Company has a December 31 year end.

Instructions

a. For each asset, calculate the annual depreciation expense using the original estimated useful life and residual value.

b. Calculate the carrying amount of each asset as at January 1, 2021.

c. For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2021.

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Type of Total Useful Life in Years Residual Value Date Acquired Jan. 1, 2006 Cost Current Proposed Current Proposed Asset 20 Building Equipment $800,000 125,000 30 4 $60,500 4,000 $40,000 Jan. 1, 2019 5,000