Lindy Weink, the new controller of Oriole Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows: Type of Asset Building Equipment Date Acquired Jan 1, 2009 Jan 1, 2022 Cost $800,500 125,410 Total Useful Life in Years Current Proposed 20 30 Residual Value Current $39,900 4,940 Proposed $60,160 3,980 After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method. Oriole Company has a December 31 year end.
Lindy Weink, the new controller of Oriole Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows: Type of Asset Building Equipment Date Acquired Jan 1, 2009 Jan 1, 2022 Cost $800,500 125,410 Total Useful Life in Years Current Proposed 20 30 Residual Value Current $39,900 4,940 Proposed $60,160 3,980 After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method. Oriole Company has a December 31 year end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Topic Video
Question
![(c)
For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2024.
Building
Equipment
$
$
Annual depreciation expense
per year
per year
$
Carrying amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F259c435f-7ba7-48e2-a33c-a78b18662215%2Fuqd7qc5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(c)
For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2024.
Building
Equipment
$
$
Annual depreciation expense
per year
per year
$
Carrying amount
![Lindy Weink, the new controller of Oriole Company, has reviewed the expected useful lives and residual values of selected
depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows:
Type of Asset
Building
Equipment
Date Acquired
Jan 1, 2009
Cost
Jan. 1, 2022
Total Useful Life in Years
Proposed
Current
$800,500
20
EEVA
125,410
Residual Value
Current Proposed
$39,900 $60,160
3,980
30
4,940
After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method.
Oriole Company has a December 31 year end.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F259c435f-7ba7-48e2-a33c-a78b18662215%2Ff1yetut_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lindy Weink, the new controller of Oriole Company, has reviewed the expected useful lives and residual values of selected
depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows:
Type of Asset
Building
Equipment
Date Acquired
Jan 1, 2009
Cost
Jan. 1, 2022
Total Useful Life in Years
Proposed
Current
$800,500
20
EEVA
125,410
Residual Value
Current Proposed
$39,900 $60,160
3,980
30
4,940
After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method.
Oriole Company has a December 31 year end.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education