E9-7 Lisa Kim, the new controller of Lafrenire Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2014. (Depreciation for 2014 has not been recorded yet.) Her findings are as follows: Calculate revised depreciation. (SO 3) AP Type of Asset Date Acquired Total Useful Life in Years Residual Value Cost Current Proposed Current Proposed Building Jan. 1, 2002 Equipment Jan. 1, 2012 $800,000 125,000 201 30 $40,000 $60,500 5 4 5,000 4,000 After discussion, management agrees to accept Lisa's proposed changes. All assets are depreciated by the straight-line method. Lafrenire Company has a December 31 Instructions year end. (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, 2014. (c) For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2014. (d) For each asset, calculate the total depreciation expense over the life of the asset assuming the asset is used until the end of its revised useful life. E9-8 On October 1, 2012. Chignecto Manufacturing