Victor Mineli, the new controller of Blossom Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings: Accumulated Useful Life (in years) Salvage Value Type of Asset Date Acquired Depreciation, Cost Jan. 1, 2025 Old Proposed Old Proposed Building Jan. 1, 2017 $783,500 $144,200 40 58 $62,500 $36,600 Warehouse Jan. 1, 2020 118,000 22,520 25 20 20 5,400 3,980 All assets are depreciated by the straight-line method. Blossom Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, no remaining life.) Compute the revised annual depreciation on each asset in 2025. (Round answers to O decimal places, e.g. 125.) Revised annual depreciation Building Warehouse

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Victor Mineli, the new controller of Blossom Company, has reviewed the expected useful lives and salvage values of selected
depreciable assets at the beginning of 2025. Here are his findings:
Accumulated
Useful Life (in years)
Salvage Value
Type of
Asset
Date
Acquired
Depreciation,
Cost
Jan. 1, 2025
Old
Proposed
Old
Proposed
Building
Jan. 1, 2017
$783,500
$144,200
40
58
$62,500
$36,600
Warehouse
Jan. 1, 2020
118,000
22,520
25
20
20
5,400
3,980
All assets are depreciated by the straight-line method. Blossom Company uses a calendar year in preparing annual financial
statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, no
remaining life.)
Compute the revised annual depreciation on each asset in 2025. (Round answers to O decimal places, e.g. 125.)
Revised annual depreciation
Building
Warehouse
Transcribed Image Text:Victor Mineli, the new controller of Blossom Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2025. Here are his findings: Accumulated Useful Life (in years) Salvage Value Type of Asset Date Acquired Depreciation, Cost Jan. 1, 2025 Old Proposed Old Proposed Building Jan. 1, 2017 $783,500 $144,200 40 58 $62,500 $36,600 Warehouse Jan. 1, 2020 118,000 22,520 25 20 20 5,400 3,980 All assets are depreciated by the straight-line method. Blossom Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, no remaining life.) Compute the revised annual depreciation on each asset in 2025. (Round answers to O decimal places, e.g. 125.) Revised annual depreciation Building Warehouse
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