Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chewy corporation purchased on building on january

Chewy Corporation purchased on building on January 1, 2009 for $900,000. The building was depreciated...

50.1K

Verified Solution

Question

Accounting

Chewy Corporation purchased on building on January 1, 2009 for $900,000. The building was depreciated using straight-line depreciation with a 40 year life and a salvage value of $40,000. At the beginning of 2017 the expected useful life and salvage values of building was re-evaluated. The building now was thought to have a total estimated life (not remaining life) of 50 years with a salvage value of $35,000. The company uses a calendar year in preparing annual financial statements. On January 1, 2017, the Accumulated Depreciation account has a balance of $172,000. a. What is the new remaining life (in years) of the building on January 1, 2017? b. What is the total revised amount of depreciation that Chewy will record from 2017 until the end of the buildings life? c. What will be the new annual depreciation expense on the building starting in 2017? d. What is the book value of the building on December 31, 2017?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students