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Question No: 3 Mr. Ahmed, the new controller of Botham Ltd., has reviewed the expected useful lives and residual values of selected depreciable assets at

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Question No: 3 Mr. Ahmed, the new controller of Botham Ltd., has reviewed the expected useful lives and residual values of selected depreciable assets at the beginning of 2020. His findings are as follows: Residual Value Type of Date Acquired Cost Asset Accumulated Total Useful Life in Years Depreciation 1/1/20 Old Proposed $190,000 40 5 0 18,000 25 20 Old Proposed Building Warehouse 1/1/10 1/1/15 $800,000 100,000 $40,000 10,000 $18,000 3,700 All assets are depreciated by the straight-line method. Botham uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Mr. Ahmed proposed change. Required: a. Compute the revised annual depreciation on cach asset in 2020. (Show computations) b. Compute the depreciation amount for the warehouse under DDBM .provided that there is no change for the first five years

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