Victor Mineli, the new controller of Splish Brothers Inc., has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date (a) Acquired Jan 1, 2014 Jan. 1. 2017 Cost $824,000 107,000 Accumulated Depreciation Jan. 1, 2022 $156,800 20.540 Useful life (in years) Old Proposed 40 25 58 20 Salvage Value Old $40,000 4,300 Proposed $37,200 All assets are depreciated by the straight-line method. Splish Brothers Inc. uses a calendar year in preparing annual adjusting entries and financial statements. After discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life) 12.960 Compute the revised annual depreciation on each asset in 2022. (Round answers to O decimal places, eg. 5,125)

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Chapter1: Financial Statements And Business Decisions
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Victor Mineli, the new controller of Splish Brothers Inc. has reviewed the expected useful lives and salvage values of selected
depreciable assets at the beginning of 2022. Here are his findings:
Type of Asset
Building
Warehouse
Date
Acquired
Jan 1, 2014
Jan 1, 2017
Cost
$824,000
107,000
Accumulated
Depreciation
Jan. 1, 2022
$156,800
Revised annual depreciation $
Useful life
(in years)
Building
Old
40
20.540 25
$
Proposed
58
20
Warehouse
Salvage Value
Old Proposed
$37,200
All assets are depreciated by the straight-line method. Splish Brothers Inc. uses a calendar year in preparing annual adjusting entries
and 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 2022. (Round answers to O decimal places, e.g. 5.125.)
$40,000
4,300
12.960
SUPPORT
Transcribed Image Text:Victor Mineli, the new controller of Splish Brothers Inc. has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type of Asset Building Warehouse Date Acquired Jan 1, 2014 Jan 1, 2017 Cost $824,000 107,000 Accumulated Depreciation Jan. 1, 2022 $156,800 Revised annual depreciation $ Useful life (in years) Building Old 40 20.540 25 $ Proposed 58 20 Warehouse Salvage Value Old Proposed $37,200 All assets are depreciated by the straight-line method. Splish Brothers Inc. uses a calendar year in preparing annual adjusting entries and 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 2022. (Round answers to O decimal places, e.g. 5.125.) $40,000 4,300 12.960 SUPPORT
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