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Lindy Weink, the new controller of Blossom Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2021.
Lindy Weink, the new controller of Blossom Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2021. (Depreciation for 2021 has not been recorded yet.) Her findings are as follows: Total Useful Life in Years Residual Value Type of Asset Date Acquired Cost Current Proposed Current Proposed Building Jan. 1, 2006 $800,100 20 30 $39,800 $60,150 Equipment Jan. 1, 2019 125,410 5 4 4,730 3,850 After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method. Blossom Company has a December 31 year end. For each asset, calculate the annual depreciation expense using the original estimated useful life and residual value. Annual depreciation expense Building $ per year Equipment $ per year Calculate the carrying amount of each asset as at January 1, 2021. Carrying amount Building $ Equipment $ For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2021. Annual depreciation expense Building $ per year Equipment $ Carrying amount Building $ Equipment $
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