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Victor Mineli, the new controller of Novak Corp., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of
Victor Mineli, the new controller of Novak Corp., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Date Accumulated Depreciation Useful life (in years) Salvage Value Type of Asset Building Acquired Cost Jan. 1, 2022 Old Proposed Old Proposed Jan. 1, 2014 $821,000 $157,200 40 58 $35,000 $53,800 Warehouse Jan. 1, 2017 106,000 20,380 25 20 4,100 21,120 All assets are depreciated by the straight-line method. Novak Corp. uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Compute the revised annual depreciation on each asset in 2022. Revised annual depreciation $ eTextbook and Media List of Accounts Building Warehouse Prepare the entry to record depreciation on the building in 2022. (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.) Date Account Titles and Explanation Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings eTextbook and Media List of Accounts Debit Credit
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