70.2K

Verified Solution

Link Copied!

Please help solve this!

Exercise 10-08 a-b (Video) Terry Wade, the new controller of Blue Spruce Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2020. His findings are as follows. Type of Asset Building Warehouse Date Acquired 1/1/14 1/1/15 Cost $808,000 114,000 Accumulated Depreciation 1/1/20 $115,800 21,860 Useful life in Years Old Proposed 40 5 0 25 20 Salvage Value Old Proposed $36,000 $36,600 4,700 24,640 All assets are depreciated by the straight-line method. Blue Spruce Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry's proposed changes. Compute the revised annual depreciation on each asset in 2020. Building Warehouse Revised annual depreciation SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE Prepare the entry to record depreciation on the building in 2020. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE

Answer & Explanation Solved by verified expert

See Answer