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Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of
Victor Mineli, the new controller of Crane 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) Old Proposed Cost Type of Asset Building Warehouse Accumulated Depreciation, Jan. 1, 2022 $134,400 23,290 Date Acquired Jan. 1, 2014 Jan. 1, 2017 Salvage Value Old Proposed $65,000 $36,700 4,550 5,100 40 58 $737,000 121,000 25 20 All assets are depreciated by the straight-line method. Crane Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The Proposed useful life is total life, not remaining life.) - Your answer is partially correct. Compute the revised annual depreciation on each asset in 2022. (Round answers to O decimal places, e.g. 125.) Building Warehouse Revised annual depreciation $ 14147.5 ta 6174 e Textbook and Media List of Accounts Your answer is partially correct. Prepare the entry to record depreciation on the building in 2022. (Round answers to O decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Accumulated Depreciation- 14147.5 Accumulated Depreciation-Buildings 14147.5 e Textbook and Media List of Accounts
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