Exercise 9-6 (Part Level Submission) Danny Venable, the new controller of Seratelli Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2014. Here are his findings: Type of | | Date | | | | Accumulated
Depreciation, | | Useful Life (in years) | | Salvage Value | Asset | | Acquired | | Cost | | Jan. 1, 2014 | | Old | | Proposed | | Old | | Proposed | Building | | Jan. 1, 2006 | | $789,900 | | $146,868 | | 40 | | 48 | | $55,560 | | $36,590 | Warehouse | | Jan. 1, 2009 | | 124,600 | | 23,626 | | 25 | | 20 | | 6,470 | | 4,910 |
All assets are depreciated by the straight-line method. Seratelli Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Danny’s proposed changes. (The “Proposed” useful life is total life, not remaining life.)
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putul
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11 years ago
