Question
Victor Mineli, the new controller of Ivanhoe Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of
Victor Mineli, the new controller of Ivanhoe Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings:
Type of | Date | Accumulated Depreciation, | Useful Life (in years) | Salvage Value | ||||||||||
Asset | Acquired | Cost | Jan. 1, 2017 | Old | Proposed | Old | Proposed | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Building | Jan. 1, 2009 | $857,000 | $159,100 | 40 | 48 | $61,500 | $35,300 | |||||||
Warehouse | Jan. 1, 2012 | 129,500 | 24,960 | 25 | 20 | 4,700 | 5,240 |
All assets are depreciated by the straight-line method. Ivanhoe Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victors proposed changes. (The Proposed useful life is total life, not remaining life.) Compute the revised annual depreciation on each asset in 2017. (Round answers to 0 decimal places, e.g. 5,275.)
Building | Warehouse | |||
Revised annual depreciation | $ | $ |
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