Part 1

1. Victor Mineli, the new controller of Carla Vista Co., has reviewed the expected useful lives and salvage values of selected depreciable asset categories at the beginning of 2017. Here are his findings:

   Category Date Historical Accum. Useful Life (Years) Salvage Value

   of Asset Acquired Cost Deprec. Original Proposed Original Proposed

   Building 1/1/2009 $736,500 $136,000 40 48 $56,500 $36,700

   Warehouse 1/1/2012 145,000 27,710 25 20 6,450 4,400

   All assets were placed into service on their acquisition dates and are depreciated by the straight-line method. Carla Vista Co. uses a calendar year in preparing annual financial statements. Note that Proposed useful life is a revised estimate of total life, not remaining life. Enter all answers in whole dollar amounts without a $. If rounding is necessary, round to the nearest whole dollar (e.g., xxx).

   1. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2016?
   2. Assume that management has agreed to accept Victors proposed useful life change for the Building, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Building in 2017?
   3. Now assume that management has agreed to accept Victors proposed changes to both the useful life and the salvage value of the Building. How much annual depreciation expense will Carla Vista recognize for the Building in 2017?
   4. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Warehouse in 2016?
   5. Assume that management has agreed to accept Victors proposed useful life change for the Warehouse, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Warehouse in 2017?
   6. Now assume that management has agreed to accept Victors proposed changes to both the useful life and the salvage value of the Warehouse. How much annual depreciation expense will Carla Vista recognize for the Warehouse in 2017?

Part II

Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020. On that date, Cullumber disposes of this equipment.

1. What is the net book value of the equipment on July 30, 2020?
2. True or false: Regardless of the value received for the equipment on July 30, 2020, Cullumber must remove its net book value from the accounting records by crediting Delivery equipment for $49,700 and debiting Accumulated Depreciation Delivery equipment for $24,800. Enter T or F.
3. Assume Cullumber scraps the equipment as having no value on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box.
4. Assume Cullumber sells the equipment for $37,200 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box .
5. Assume Cullumber sells the equipment for $18,000 cash on July 30. What is the gain or loss, if any, that Cullumber should recognize? Enter D for debit or C for credit in the first box and the amount in the second box.

The previous answers given in chegg were incorrect please provide me the correct answers