Jack Kingman the new controller of Henderson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2021. His findings are as follows. Type of Asset Date Acquired Building 1/1/15 Warehouse 1/1/16 Cost $1,600,000 300,000 Accumulated Depreciation 1/1/21 $228,000 57,000 Useful Life (in Years) Old Proposed. 40 25 50 20 Salvage Value Old $80,000 15,000 Proposed $140,000 27,000 All assets are depreciated by the straight-line method. Henderson Company uses a calendar year in preparing annual financial statement. After discussion, management has agreed to accept Jack's proposed changes.
Jack Kingman the new controller of Henderson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2021. His findings are as follows. Type of Asset Date Acquired Building 1/1/15 Warehouse 1/1/16 Cost $1,600,000 300,000 Accumulated Depreciation 1/1/21 $228,000 57,000 Useful Life (in Years) Old Proposed. 40 25 50 20 Salvage Value Old $80,000 15,000 Proposed $140,000 27,000 All assets are depreciated by the straight-line method. Henderson Company uses a calendar year in preparing annual financial statement. After discussion, management has agreed to accept Jack's proposed changes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Jack Kingman the new controller of Henderson Company, has reviewed the expected useful lives and salvage values of selected
depreciable assets at the beginning of 2021. His findings are as follows.
Type of
Asset
Date
Acquired
Building
Warehouse 1/1/16
1/1/15
Cost
$1,600,000
300,000
Accumulated
Depreciation
1/1/21
$228,000
57,000
Useful Life
(in Years)
Old Proposed
40
25
50
20
Salvage Value
Old
$80,000
15,000
Proposed
$140,000
27,000
All assets are depreciated by the straight-line method. Henderson Company uses a calendar year in preparing annual financial
statement. After discussion, management has agreed to accept Jack's proposed changes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c9df2d7-a8e6-4b03-b6bc-aabcb7604158%2F2b255897-9647-476d-82eb-312224ab66fe%2Fbw8vaec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jack Kingman the new controller of Henderson Company, has reviewed the expected useful lives and salvage values of selected
depreciable assets at the beginning of 2021. His findings are as follows.
Type of
Asset
Date
Acquired
Building
Warehouse 1/1/16
1/1/15
Cost
$1,600,000
300,000
Accumulated
Depreciation
1/1/21
$228,000
57,000
Useful Life
(in Years)
Old Proposed
40
25
50
20
Salvage Value
Old
$80,000
15,000
Proposed
$140,000
27,000
All assets are depreciated by the straight-line method. Henderson Company uses a calendar year in preparing annual financial
statement. After discussion, management has agreed to accept Jack's proposed changes.
![Show how the building is reported in the balance sheet.
Henderson Company
Balance Sheet
59
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c9df2d7-a8e6-4b03-b6bc-aabcb7604158%2F2b255897-9647-476d-82eb-312224ab66fe%2Fs17xwcb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Show how the building is reported in the balance sheet.
Henderson Company
Balance Sheet
59
$
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