Compute the revised annual depreciation on each asset

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Question - Terry wade, the new controller of Hellickson Company has reviewed the expected useful live and salvage value of selected depreciable assets at the beginning of 2017. His findings are as follows.

Type of Asset

Date Acquired

Cost

Accumulated Depreciation 1/1/17

Useful life in Years

Salvage Value

Old

 

Old

Proposed

Building

1/1/11

$812,000

$115,650

40

50

$41,000

$71,550

Warehouse

1/1/12

100,000

19,020

25

20

4,900

10,480

All assets are depreciated by the straight-line method, Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept  Terry's proposed changes.

Required - Compute the revised annual depreciation on each asset in 2017.

Reference no: EM131592908

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