Lindy Weink, the new controller of Lafrenière Company, has reviewed the expected useful lives and residual values
Question:
After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straightline method. Lafrenière Company has a December 31 year end.
Instructions
(a) For each asset, calculate the annual depreciation expense using the original estimated useful life and residual value.
(b) Calculate the carrying amount of each asset as at January 1, 2014.
(c) For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2014.
(d) For each asset, calculate the total depreciation expense over the life of the asset assuming the asset is used until the end of its revised useful life.
Step by Step Answer:
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow