Exercise 10-8 (Part Level Submission)

Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. His findings are as follows.

		Date				Accumulated Depreciation		Useful life in Years				Salvage Value
Type of Asset		Acquired		Cost		1/1/17		Old		Proposed		Old		Proposed
Building		1/1/11		$810,000		$115,950		40		50		$37,000		$73,650
Warehouse		1/1/12		116,000		22,360		25		20		4,200		27,640

All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terrys proposed changes.

1. Compute the revised annual depreciation on each asset in 2017.

2. Prepare the entries to record accumulated depreciation on buildings in 2017.

1. Compute the revised annual depreciation on each asset in 2017.

2. Prepare the entries to record accumulated depreciation on buildings in 2017.

Exercise 10-8 (Part Level Submission) Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. His findings are as follows. Accumulated Useful life Depreciation in Years Salvage Value 1/1/17 Old Proposed old Proposed Type of Asset Acquired Cost Building 1/1/11 5810,000 $115,950 40 50 $37,000 $73,650 22,360 25 Warehouse 11/12 116,000 20 200 27,640 All assets are depreciated by the straight-linc method. Hellickson Company uses a calendar yea in proparing annual financial statements. After discu management has agreed to accept Terry's d changes. v (a) EX Your answer is incorrect. Try again. Compute the revised annual depreciation on each asset in 2017. 12.405 Revised annual depreciation 3300 SHOW LIST OF ACCOUNTS LINK TO TEXT