Victor Mineli, the new controller of Wildhorse Co., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings: Type of Asset Building Warehouse Date Acquired Jan. 1, 2017 Jan. 1, 2020 Cost $838,000 116,000 Accumulated Depreciation, Jan. 1, 2025 $156,500 22,250 Useful Life (in years) Old 40 25 Proposed 58 20 Salvage Value Old $55,500 4,750 Proposed $35,700 3,750 All assets are depreciated by the straight-line method. Wildhorse Co. 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.)

Victor Mineli, the new controller of Wildhorse Co., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings: Type of Asset Date Acquired Accumulated Depreciation, Useful Life (in years) Salvage Value Cost Jan. 1, 2025 Old Proposed Old Proposed Building Warehouse Jan. 1, 2017 Jan. 1, 2020 $838,000 $156,500 40 58 $55,500 $35,700 116,000 22,250 25 20 4,750 3,750 All assets are depreciated by the straight-line method. Wildhorse Co. 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.)