Steve Grant, the new controller of Bramble Ltd, has reviewed the expected useful lives and residual values of selected depreci ssets at the beginning of 2020. His findings are as follows. Accumulated Depreciation Total Useful life in Years Residual Value Date Type of Asset Acquired Cost 1/1/20 Old Proposed Old Proposed Building 1/1/10 £821,000 E196,500 40 50 £35,000 E56,500 Warehouse 1/1/15 106,000 20,380 25 20 4,100 21,120 All assets are depreciated by the straight-line method. Bramble uses a calendar year in preparing annual financial statements discussion, management has agreed to accept Grant's proposed changes. (a)
Steve Grant, the new controller of Bramble Ltd, has reviewed the expected useful lives and residual values of selected depreci ssets at the beginning of 2020. His findings are as follows. Accumulated Depreciation Total Useful life in Years Residual Value Date Type of Asset Acquired Cost 1/1/20 Old Proposed Old Proposed Building 1/1/10 £821,000 E196,500 40 50 £35,000 E56,500 Warehouse 1/1/15 106,000 20,380 25 20 4,100 21,120 All assets are depreciated by the straight-line method. Bramble uses a calendar year in preparing annual financial statements discussion, management has agreed to accept Grant's proposed changes. (a)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Steve Grant, the new controller of Bramble Ltd., has reviewed the expected useful lives and residual values of selected depreciable
assets at the beginning of 2020. His findings are as follows.
Accumulated
Total Useful life
Date
Depreciation
in Years
Residual Value
Type of Asset Acquired
Cost
1/1/20
Old
Proposed
old
Proposed
Building
1/1/10
£821,000
E196,500
40
50
£35,000
£56.500
Warehouse
1/1/15
106,000
20,380
25
20
4,100
21,120
All assets are depreciated by the straight-line method. Bramble uses a calendar year in preparing annual financial statements. After
discussion, management has agreed to accept Grant's proposed changes.
Transcribed Image Text:Attempts: unlimited
(b)
Prepare the entry to record depreciation on the building in 2020. (Credit account titles are automatically indented when amount is
entered, Do not indent manually)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
List of Accounts
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