Lindy Weink, the new controller of Lafrenire Company, has reviewed the expected useful lives and residual values
Question:
Lindy Weink, the new controller of Lafrenière Company, has reviewed the expected useful lives and residual values of selected depreciable assets at December 31, 2024. (Depreciation for 2024 has not been recorded yet.) Her findings are as follows:
After discussion, management agrees to accept Lindy’s proposed changes. All assets are depreciated by the straight-line 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, 2024.
c. For each asset, calculate the revised annual depreciation expense and the carrying amount at December 31, 2024.
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak