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Mark Geary, the controller of Cullumber Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of
Mark Geary, the controller of Cullumber Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Useful Life (in Years) Salvage Value Accumulated Type of Asset Date Acquired Depreciation, Old Proposed Old Proposed Cost Jan. 1, 2022 Building Warehouse Jan. 1, 2014 $2,709,000 $519,600 40 50 $149,000 $81,000 Jan. 1, 2017 255,000 55,000 25 20 39,000 11,000 All assets are depreciated by the straight-line method. Cullumber Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Mark's proposed changes. (The "Proposed" useful life is total life, not remaining life.)
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