Victor Mineli, the new controller of Sunland Company, has reviewed the expected useful lives and...
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Accounting
Victor Mineli, the new controller of Sunland Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2022. Here are his findings: Useful Life (in years) Salvage Value Type of Asset Date Acquired Cost Accumulated Depreciation, Jan. 1, 2022 $135,500 Old 40 Proposed 58 Old $57,000 Building Jan. 1, 2014 $734,500 Proposed $35,300 3,140 Warehouse Jan. 1, 2017 165,500 31,860 25 6,200 All assets are depreciated by the straight-line method. Sunland 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 $ 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 O for the amounts.) Account Titles and Explanation Debit Credit
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