Steve Grant, the new controller of Greenbriar Ltd., has reviewed the expected useful lives and residual values of selected depreciable assets at the beginning of 2025. His findings are as follows.

All assets are depreciated by the straight-line method. Greenbriar uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Grant’s proposed changes.
Instructions

a. Compute the revised annual depreciation on each asset in 2025. (Show computations.)

b. Prepare the entry (or entries) to record depreciation on the building in 2025.
Journalize entries for straight-line depreciation and revaluation.

Transcribed Image Text:

Total Useful Accumulated Life in Years Type of Asset Date Acquired Depreciation Cost 1/1/25 Old Proposed Old Residual Value Proposed Building Warehouse 1/1/20 1/1/15 800,000 100,000 190,000 40 50 40,000 18,000 18,000 25 20 10,000 3,700