Question

Exerclse 9-07 (Part Level Submission) Victor Mineli, the new controller of Crane 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) Accumulated Deprecation, Jan. 1, 2022 Salvage Value Type of Asset Date Old Proposed Old Proposed Acquired Cost $162,800 $36,900 $869,500 40 $55,500 Jan. 1, 2014 58 Bulding 28,750 25 20 5,250 3,400 Jan. 1, 2017 149,000 Warehouse All assets are depreciated by the straight-line method. Crane Company usses a calendar year in preparing annual financial statements. Arter discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) (a) Compute the revised annual depreciation on each asset in 2022. (Round answers to 0 decimal places, e.g. 125.) Warehouse Bullding Revised annual depreciation Open Show Work Click If you would like to Show Work for this question: SHOW LIST OF ACCOUNTS LINK TO V1DEO LINK TO TEXT SUBMIT ANSWER SAVE FOR LATER Attempts: 0 of 6 used

Answer 1

Given Accumulated Useful Life Туре of Date Salvage Value Cost Depreciation Asset Acquired Proposed Old 5855500 Proposed 36900 Jan 1, 2022 Old Building Warehouse 162800 Jan. 1, 2014 869500 40 20 Jan. 1, 2017 149000 3400 5250 28750 25 Solution Net Book Salvage Used Balance Depreciati Турe of Accumulated Cost Net Depreciation Value Value Useful Life Life Asset on Building Warehouse 706700 869500 162800 36900 669800 13396 50 149000 28750 3400 116850 120250 5 15 7790 where, Cost Accumulated depreciation Net Book Value Proposed Salvage Value Net Book Value Salvage Value Salvage Value = Net Used Life= Jan. 1, 2022 - Purchase date Balance useful Life Proposed Useful life used life Net Balance useful life Depreciation Hence is Particulars Building Warehouse Revised annual depreciation ($) 13396 7790