Us DLUS Custom Course for St. Cloud State University Gradebook ORION (ACC 291/ V
ID: 2407527 • Letter: U
Question
Us DLUS Custom Course for St. Cloud State University Gradebook ORION (ACC 291/ Victor Minel, the new controller of Pharoah Company, has reviewed the expected useful lives and salvage values of selected depreciable asets t the begining of 20132 Here are his findings: Type of Date Old Building Jan. 1, 2009 40 4$57,500 $36,100 $728,500 Warehouse 2012 Jan. 1, 5,5005,100 161,500 31,200 25 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 2017. (Round answers to o decimal places, a.g. 125.) Build TO TEXTExplanation / Answer
Answers
Working column
BUILDING
A
Original Cost
$ 7,28,500.00
B
Original Salvage Value
$ 57,500.00
C=A-B
Original Depreciable base
$ 6,71,000.00
D
Original Useful Life (in years)
40
E = C/D
Annual Straight Line depreciation (old)
$ 16,775.00
F
Purchased on
01-Jan-09
G
Useful Life expired till
31-Dec-16
H = G - F
Expired Life (in years)
8
I = E x H (also given in question)
Accumulated Depreciation till 31 Dec 2016
$ 1,34,200.00
J = A - I
Book Value when estimates were revised
$ 5,94,300.00
K
New Salvage value
$ 36,100.00
L = J - K
New depreciable base
$ 5,58,200.00
M
New Useful Life (in years)
48
N = H
Life already expired
8
O = M - N
Remaining Life
40
P = L/O
New Revised annual depreciation
$ 13,955
Working column
WAREHOUSE
A
Original Cost
$ 1,61,500.00
B
Original Salvage Value
$ 5,500.00
C=A-B
Original Depreciable base
$ 1,56,000.00
D
Original Useful Life (in years)
25
E = C/D
Annual Straight Line deprecitaion (old)
$ 6,240.00
F
Purchased on
01-Jan-12
G
Useful Life expired till
31-Dec-16
H = G - F
Expired Life (in years)
5
I = E x H (also given in question)
Accumulated Depreciation till 31 Dec 2016
$ 31,200.00
J = A - I
Book Value when estimates were revised
$ 1,30,300.00
K
New Salvage value
$ 5,100.00
L = J - K
New depreciable base
$ 1,25,200.00
M
New Useful Life (in years)
20
N = H
Life already expired
5
O = M - N
Remaining Life
15
P = L/O
New Revised annual depreciation
$ 8,347
BUILDING
WAREHOUSE
Revised Annual Depreciation
$ 13,955
$ 8,347
Accounts title
Debit
Credit
Depreciation expense (Building)
$ 13,955
Accumulated Depreciation - Building
$ 13,955
Working column
BUILDING
A
Original Cost
$ 7,28,500.00
B
Original Salvage Value
$ 57,500.00
C=A-B
Original Depreciable base
$ 6,71,000.00
D
Original Useful Life (in years)
40
E = C/D
Annual Straight Line depreciation (old)
$ 16,775.00
F
Purchased on
01-Jan-09
G
Useful Life expired till
31-Dec-16
H = G - F
Expired Life (in years)
8
I = E x H (also given in question)
Accumulated Depreciation till 31 Dec 2016
$ 1,34,200.00
J = A - I
Book Value when estimates were revised
$ 5,94,300.00
K
New Salvage value
$ 36,100.00
L = J - K
New depreciable base
$ 5,58,200.00
M
New Useful Life (in years)
48
N = H
Life already expired
8
O = M - N
Remaining Life
40
P = L/O
New Revised annual depreciation
$ 13,955
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