Current Attempt in Progress Joseph Geary, the controller of Carla Vista 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 Accumulated Type of Depreciation, Old Proposed Old Date Acquired Proposed Asset Cost Jan. 1, 2022 Building Jan. 1, 2014 $2,717,000 $536,600 40 50 $124,000 $93,000 ● Warehouse Jan. 1, 2017 256,000 64,000 25 20 19,000 15,000 All assets are depreciated by the straight-line method. Carla Vista Company uses a calendar year in preparing annual financ statements. After discussion, management has agreed to accept Joseph's proposed changes. (The "Proposed" useful life is
Current Attempt in Progress Joseph Geary, the controller of Carla Vista 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 Accumulated Type of Depreciation, Old Proposed Old Date Acquired Proposed Asset Cost Jan. 1, 2022 Building Jan. 1, 2014 $2,717,000 $536,600 40 50 $124,000 $93,000 ● Warehouse Jan. 1, 2017 256,000 64,000 25 20 19,000 15,000 All assets are depreciated by the straight-line method. Carla Vista Company uses a calendar year in preparing annual financ statements. After discussion, management has agreed to accept Joseph's proposed changes. (The "Proposed" useful life is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Current Attempt in Progress
Joseph Geary, the controller of Carla Vista 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
Accumulated
Depreciation,
Old
Type of
Asset
Old
Date
Acquired
Proposed
Proposed
Cost
Jan. 1, 2022
Building
Jan. 1, 2014
$2,717,000
$536,600
40
50
$124,000
$93,000
●
Warehouse
Jan. 1, 2017
256,000
64,000
25
20
19,000
15,000
All assets are depreciated by the straight-line method. Carla Vista Company uses a calendar year in preparing annual financial
statements. After discussion, management has agreed to accept Joseph's proposed changes. (The "Proposed" useful life is total life,
not remaining life.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd1340e1-026e-4b10-9e6b-a53bd1323fd7%2F95e95c8a-66c0-4d0e-b1a7-1ca149d2c854%2F3qxbiil_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current Attempt in Progress
Joseph Geary, the controller of Carla Vista 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
Accumulated
Depreciation,
Old
Type of
Asset
Old
Date
Acquired
Proposed
Proposed
Cost
Jan. 1, 2022
Building
Jan. 1, 2014
$2,717,000
$536,600
40
50
$124,000
$93,000
●
Warehouse
Jan. 1, 2017
256,000
64,000
25
20
19,000
15,000
All assets are depreciated by the straight-line method. Carla Vista Company uses a calendar year in preparing annual financial
statements. After discussion, management has agreed to accept Joseph's proposed changes. (The "Proposed" useful life is total life,
not remaining life.)
![(a)
Compute the revised annual depreciation on each asset in 2022.
Type of Asset
Building
Revised annual depreciation
$
Save for Later
Warehouse
$
●
Attempts: 0 of 1 used
Submit Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd1340e1-026e-4b10-9e6b-a53bd1323fd7%2F95e95c8a-66c0-4d0e-b1a7-1ca149d2c854%2F1tg82nq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a)
Compute the revised annual depreciation on each asset in 2022.
Type of Asset
Building
Revised annual depreciation
$
Save for Later
Warehouse
$
●
Attempts: 0 of 1 used
Submit Answer
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