Victor Mineli, the new controller of Sunland 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 Asset Building Warehouse Date Acquired Jan. 1, 2017 Jan. 1, 2017 Cost $734,500 165,500 Accumulated Depreciation, Useful Life (in years) Jan. 1, 2027 Old Proposed 40 48 31,860 25 $135,500 20 Salvage Value Old $57,000 6,200 Proposed $35,000 3,590 All assets are depreciated by the straight-line method. Sunland 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.)
Victor Mineli, the new controller of Sunland 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 Asset Building Warehouse Date Acquired Jan. 1, 2017 Jan. 1, 2017 Cost $734,500 165,500 Accumulated Depreciation, Useful Life (in years) Jan. 1, 2027 Old Proposed 40 48 31,860 25 $135,500 20 Salvage Value Old $57,000 6,200 Proposed $35,000 3,590 All assets are depreciated by the straight-line method. Sunland 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Victor Mineli, the new controller of Sunland 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
Asset
Building
Warehouse
Date
Acquired
Jan. 1, 2017
Jan. 1, 2017
Cost
$734,500
165,500
Revised annual depreciation $
Accumulated
Depreciation,
Useful Life (in years)
Jan. 1, 2027 Old Proposed
$135,500
40
Building
31,860 25
48
$
20
All assets are depreciated by the straight-line method. Sunland 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.)
Salvage Value
Old Proposed
$35,000
Warehouse
$57,000
6,200
3,590
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