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Exercise 9-6 Victor Mineli, the new controller of Oriole Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the
Exercise 9-6 Victor Mineli, the new controller of Oriole 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 Accumulated Depreciation, Jan. 1, 2017 Useful Life (in years) Old Proposed Salvage Value Old Proposed Cost Date Acquired Jan. 1, 2009 Building $797,500 $145,600 40 4 8 $69,500 $36,800 Warehouse Jan. 1, 2012 118,500 22,540 25 20 5,800 5,500 All assets are depreciated by the straight-line method. Oriole Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor's 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
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