Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan. 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Useful life (in Years) Old Proposed 40 19,200 25 Building 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Warehouse Old $35,000 4,000 Proposed $69,250 20,800 4

Terry Wade, the new controller of Ayayai Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date: Acquired Jan. 1, 2016 Jan. 1, 2017 Cost $800,000 100,000 Accumulated Depreciation Jan. 1, 2022 $114,750 Revised annual depreciation Compute the revised annual depreciation on each asset in 2022. Useful life (in Years) Old Proposed 40 19,200 25 Building 50 20 All assets are depreciated by the straight-line method. Ayayai Company uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Terry's proposed changes. (The "Proposed" useful life is total life, not remaining life.) Salvage Value Warehouse Old $35,000 4,000 Proposed $69,250 20,800 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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