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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 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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