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Victor Mineli, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning
Victor Mineli, the new controller of Sheridan Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Accumulated Useful Life (in years) Salvage Value Type of Asset Building Warehouse Date: Acquired Depreciation, Cost Jan. 1, 2022 Old Proposed Old Proposed Jan. 1, 2014 $806,000 $149,200 40 58 $60,000 $36,800 Jan. 1, 2017 150,500 28.820 25 20 6,400 4,200 All assets are depreciated by the straight-line method. Sheridan 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.)
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