Lisa Kim, the new controller of LafrenieÌre Company, has reviewed the expected useful lives and residual values
Question:
After discussion, management agrees to accept Lisas proposed changes. All assets are depreciated by the straight-line method. LafrenieÌre 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:
Principles Of Financial Accounting
ISBN: 9781118757147
1st Canadian Edition
Authors: Jerry J. Weygandt, Michael J. Atkins, Donald E. Kieso, Paul D. Kimmel, Valerie Ann Kinnear, Barbara Trenholm, Joan E. Barlow