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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 2022.
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 Type of Asset Accumulated Depreciation, Jan. 1.2022 Old Proposed Old Date Acquired Proposed Cost Bullding Jan 1, 2014 Jan 1, 2017 $2,709,000 255,000 $519,600 55,000 40 25 50 20 $149,000 39,000 $81.000 11.000 Warehouse 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.) Compute the revised annual depreciation on each asset in 2022. Type of Asset Building Warehouse Revised annual depreciation $ Prepare the entry for entries) to record depreciation on the building in 2022. (Credit account titles are automatically indented when the amount is select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31
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