Help I System Announcements NEXT values of selected depreciable a ssets at the b
ID: 2522744 • Letter: H
Question
Help I System Announcements NEXT values of selected depreciable a ssets at the beginning of 2017. Here are his findings: Accumulated Depreciation, Useful Life (in years) Salvage Value Type of Date Asset AcquiredCost Jan. 1, 2017 oldProposed old Proposed Jan. 1, $728,500 $134,200 40 $57,500 $36,100 Building2009 Warehouse 2012 All assets are depreciated by the straight-line method. Pharoah Company uses a calendar year in preparing annual financial statements. After 48 Jan. 1, 161,500 31,200 25 5,500 5,100 discussion, management has agreed to accept Victor's proposed changes. (The "Proposed" useful life is total life, not remaining life.) ? (a) Compute the revised annual depreciation on each asset in 2017. (Round answers to o decimal places, e.g. 125.) BuildingWarehouse Revised annual depreciation Attempts: O of 5 used SAVE FOR LATER 950 PM ??Explanation / Answer
Answers
Building
Warehouse
Original Cost
$ 7,28,500.00
$ 1,61,500.00
(-) Accumulated Depreciation till Jan 1, 2017
$ 1,34,200.00
$ 31,200.00
Book Value on Jan 1, 2017 (A)
$ 5,94,300.00
$ 1,30,300.00
Building
Warehouse
Original Life [in years]
40
25
New Life [proposed]
48
20
(-) Life [in years] passed
8 [Jan 1, 2009 to Dec 31, 2016]
5 [Jan 1, 2012 to Dec 31, 2016]
Remaining Useful Life [in years] [B]
40
15
Building
Warehouse
Book Value for remaining proposed life
$ 5,94,300.00
$ 1,30,300.00
(-) Proposed Salvage value
$ 36,100.00
$ 5,100.00
New Depreciable base [C]
$ 5,58,200.00
$ 1,25,200.00
Remaining Useful Life [in years] [calculated above]
40
15
New Annual Straight Line Depreciation
$ 13,955.00 [558200/40]
$ 8,347.00 [125200/15]
Building
Warehouse
Revised Annual Depreciation
$ 13,955.00
$ 8,347.00
Building
Warehouse
Original Cost
$ 7,28,500.00
$ 1,61,500.00
(-) Accumulated Depreciation till Jan 1, 2017
$ 1,34,200.00
$ 31,200.00
Book Value on Jan 1, 2017 (A)
$ 5,94,300.00
$ 1,30,300.00
Building
Warehouse
Original Life [in years]
40
25
New Life [proposed]
48
20
(-) Life [in years] passed
8 [Jan 1, 2009 to Dec 31, 2016]
5 [Jan 1, 2012 to Dec 31, 2016]
Remaining Useful Life [in years] [B]
40
15
Building
Warehouse
Book Value for remaining proposed life
$ 5,94,300.00
$ 1,30,300.00
(-) Proposed Salvage value
$ 36,100.00
$ 5,100.00
New Depreciable base [C]
$ 5,58,200.00
$ 1,25,200.00
Remaining Useful Life [in years] [calculated above]
40
15
New Annual Straight Line Depreciation
$ 13,955.00 [558200/40]
$ 8,347.00 [125200/15]
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.