Question

Victor Mineli, the new controller of Oriole Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Useful Life (in years) Salvage Value Type of Asset Date Acquired Accumulated Depreciation, Jan. 1, 2022 Cost Old Proposed Building Warehouse Jan. 1, 2014 Jan 1, 2017 $975,500 125,000 $183,700 23,960 40 25 58 20 Old $57,000 5,200 Proposed $35,300 4,890 All assets are depreciated by the straight-line method. Oriole 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, notremaining life.) Compute the revised annual depreciation on each asset in 2022. (Round answers to decimal places, e.g. 125.) Building Warehouse Revised annual depreciation $ eTextbook and Media List of Accounts Prepare the entry to record depreciation on the building in 2022. (Round answers to decimal places, e.g. 125. 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 for the amounts.) Account Titles and Explanation Debit Credit

Answer 1

	Building	Warehouse
Cost	975500	125000
Less: Accumulated Depreciation	183700	23960
Book value, Jan 1 2022	791800	101040
Less: Revised salvage value	35300	4890
Depreciable cost	756500	96150
Divide by Remaining useful life	50	15
Revised annual depreciation	15130	6410
	Debit	Credit
Depreciation expense	15130
Accumulated Depreciation-Building		15130