Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2027. Here are his findings: Type of Date Accumulated Depreciation, Useful Life (in years) Salvage Value Asset Acquired Cost Jan. 1, 2027 Old Proposed Old Proposed Building Jan. 1, 2019 $869,500 $162,800 40 48 $55,500 $36,900 Warehouse Jan. 1, 2022 149,000 28,750 25 20 5,250 3,400 All assets are depreciated by the straight-line method. Crane 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, not remaining life.) Compute the revised annual depreciation on each asset in 2027. (Round answers to O decimal places, e.g. 5,275.) Building Revised annual depreciation $ Warehouse
Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2027. Here are his findings: Type of Date Accumulated Depreciation, Useful Life (in years) Salvage Value Asset Acquired Cost Jan. 1, 2027 Old Proposed Old Proposed Building Jan. 1, 2019 $869,500 $162,800 40 48 $55,500 $36,900 Warehouse Jan. 1, 2022 149,000 28,750 25 20 5,250 3,400 All assets are depreciated by the straight-line method. Crane 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, not remaining life.) Compute the revised annual depreciation on each asset in 2027. (Round answers to O decimal places, e.g. 5,275.) Building Revised annual depreciation $ Warehouse
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable
assets at the beginning of 2027. Here are his findings:
Type of
Date
Accumulated
Depreciation,
Useful Life (in years)
Salvage Value
Asset
Acquired
Cost
Jan. 1, 2027
Old
Proposed
Old
Proposed
Building
Jan. 1, 2019
$869,500
$162,800
40
48
$55,500
$36,900
Warehouse
Jan. 1, 2022
149,000
28,750
25
20
5,250
3,400
All assets are depreciated by the straight-line method. Crane 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, not remaining
life.)
Compute the revised annual depreciation on each asset in 2027. (Round answers to O decimal places, e.g. 5,275.)
Revised annual depreciation
$
Building
$
Warehouse
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