Victor Mineli, the new controller of Windsor, 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 $821,000 115,000 Accumulated Depreciation Jan. 1, 2022 $155,600 Useful life (in years) Old Proposed 40 22,180 25 Salvage Value Old 58 $43,000 20 4,100 Proposed $30,400 20,820 All assets are depreciated by the straight-line method. Windsor, 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.)
Victor Mineli, the new controller of Windsor, 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 $821,000 115,000 Accumulated Depreciation Jan. 1, 2022 $155,600 Useful life (in years) Old Proposed 40 22,180 25 Salvage Value Old 58 $43,000 20 4,100 Proposed $30,400 20,820 All assets are depreciated by the straight-line method. Windsor, 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.)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter9: Depreciation (deprec)
Section: Chapter Questions
Problem 1R: Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an...
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