Exercise 9-6

Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings:

Type of Asset Date Acquired Cost Accumulated Depreciation, Jan. 1, 2017 Useful Life (in years) Salvage Value Old Proposed Old Proposed Building Jan. 1, 2009 $772,000 $141,800 40 48 $63,000 $35,200 Warehouse Jan. 1, 2012 164,000 31,690 25 20 5,550 5,400

All assets are depreciated by the straight-line method. Crane Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victors proposed changes. (The Proposed useful life is total life, not remaining life.)

Compute the revised annual depreciation on each asset in 2017. (Round answers to 0 decimal places, e.g. 125.)

Building Warehouse Revised annual depreciation $enter a dollar amount $enter a dollar amount

LINK TO TEXT

Prepare the entry to record depreciation on the building in 2017. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount