Exercise 9-6 (Part Level Submission) Victor Mineli, the new controller of Pharoa

Question

Exercise 9-6 (Part Level Submission) Victor Mineli, the new controller of Pharoah Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017 Here are his findings Accumulated Depreciation, Useful Life (in years) Salvage Value Date Acquired Type of Asset Building Warehouse 2012 All assets are depreciated by the straight-line method. Pharoah Company uses a calendar year in preparing annual financial statements. After discussion, management has Cost $800,500 117,000 Jan. 1, 2017 Old Proposed Old Proposed $35,800 4,600 Jan. 1, 2009 $147,300 40 48 $64,000 Jan. 1 22,440 25 20 4,800 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 0 decimal places, e.g. 125.) Buildin Warehouse Revised annual depreciation

Explanation / Answer

Calculate depreciation for 2017 :

Building revised depreciation = (800500-147300-35800)/40 = 15435 per year

Warehouse revised depreciation = (117000-22440-4600)/15 = 5997 per year

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.