16 Problem: Module 2 Textbook Problem 16 Learning Objectives: 2-9 Calculate straight-line depreciation and show how it affects financial statements 2-13 Show how revising estimates affects financial statements Th On January 1 Yeart. Poultry Processing Company purchased a freezer and related installation equipment for $66,000 The equipment had a three-year estimated life with a $4.800 salvage value Straight line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was tevised to $3,800 Required Compute the depreciation expense for each of the four years Year 1 to Year 4 Depreciation Expense Year 1 Year 2 Year 3 Yoar 4 17 5 Problem: Module 2 Textbook Problem 17 Learning Objective: 2.14 Show how continuing expenditures for operational assets affect financial statements Bil's Wrecker Service has just completed a minor repair on a tow truck The repair cost was $1060, and the book valae prior to the tepol was $5.250. In addition, the company spent $9,000 to replace the root on a building the new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at 586 400 and related Accumulated Depreciation account at $41.700. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building Book Value Tow Truck Buiding