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Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of
Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Date Accumulated Depreciation Useful life (in Years) Type of Asset Acquired Cost Jan. 1, 2022 Old Proposed Old Salvage Value Proposed Building Warehouse Jan. 1, 2016 Jan. 1, 2017 $810,000 104,000 $114,750 401 50 $45,000 $39,650 20,000 25 20 4,000 10,500 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) (a) Compute the revised annual depreciation on each asset in 2022. Building Revised annual depreciation : Warehouse
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