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 2014. His findings are as follows.

Date

Accumulated

Depreciation

Useful life

in Years

Salvage Value

Type of Asset

Acquired

Cost

1/1/14

Old

Proposed

Old

Proposed

Building1/1/08$824,700$117,6454050$40,400$60,695Warehouse1/1/09108,70020,66025205,40016,190

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 Terry's proposed changes.

(a)

Compute the revised annual depreciation on each asset in 2014.

Building

Warehouse

Revised annual depreciation$

$

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