Victor Mineli, the new controller of Cullumber Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Type ofAsset DateAcquired Cost AccumulatedDepreciation,Jan. 1, 2022 Useful Life (in years) Salvage Value Old Proposed Old Proposed Building Jan. 1, 2014 $984,500 $182,900 40 58 $70,000 $36,600 Warehouse Jan. 1, 2017 168,500 32,490 25 20 6,050 4,400 All assets are depreciated by the straight-line method. Cullumber 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 2022. (Round answers to 0 decimal places, e.g. 125.) Building Warehouse Revised annual depreciation $enter a dollar amount $enter a dollar amount Prepare the entry to record depreciation on the building in 2022. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Victor Mineli, the new controller of Cullumber Company, has reviewed the expected useful lives and salvage values of selected
Type of
Asset |
Date
Acquired |
Cost
|
Accumulated
Depreciation, Jan. 1, 2022 |
Useful Life (in years)
|
Salvage Value
|
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Old
|
Proposed
|
Old
|
Proposed
|
|||||||||||
Building
|
Jan. 1, 2014 | $984,500 | $182,900 | 40 | 58 | $70,000 | $36,600 | |||||||
Warehouse
|
Jan. 1, 2017 | 168,500 | 32,490 | 25 | 20 | 6,050 | 4,400 |
All assets are depreciated by the straight-line method. Cullumber 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 2022. (Round answers to 0 decimal places, e.g. 125.)
Building
|
Warehouse
|
|||
---|---|---|---|---|
Revised annual depreciation
|
$enter a dollar amount
|
$enter a dollar amount
|
Prepare the entry to record depreciation on the building in 2022. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
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