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Victor Minell, the new controller of Pharoah Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of
Victor Minell, the new controller of Pharoah 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 Asset Building Warehouse Date Acquired Jan 1, 2009 Jan 1, 2012 Cost $728,500 161,500 Accumulated Depreciation Jan 1, 2017 $134 200 31.200 Useful Life (in years) Old Proposed 40 48 25 20 Salvage Value Old Proposed $57,500 $36,100 5,500 5.100 All assets are depreciated by the straight-line method. Pharoah Compary 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 incorrect Compute the revised annual depreciation on each asset in 2017. (Round answers to decimal places, s. 125.) Building Warehouse Revised annual depreciation $
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