Victor Mineli, the new controller of Carla Vista Co., has reviewed the expected useful lives and salvage values of selected depreciableasset categories at the beginning of 2021. Here are his findings:Categoryof AssetDateHistoricalAccum.Useful Life (Years)Original Proposed Original ProposedSalvage ValueAcquiredCostDeprec.$829,000 $369,000Building1/1/200343$50,000 $40,000Machinery 1/1/2011245,00092,000252015,0009,000All assets were placed into service on their acquisition dates and are depreciated by the straight-line method. Carla Vista Co. uses acalendar year in preparing annual financial statements. Note that "Proposed" useful life is a revised estimate of total life, notremaining life. Enter all answers in whole dollar amounts without a $. If rounding is necessary, round to the nearest whole dollar (e.g.,XXX).a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2020? $b. Assume that management has agreed to accept Victor's proposed useful life change for the Building, but decides to retain theoriginal salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Building in 2021? $c. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Machinery in 2020? $d. Assume that management has agreed to accept Victor's proposed useful life change for the Machinery, but decides to retain theoriginal salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Machinery in 2021? $

Category of Asset Date Acquired Historical Cost Accumulated Dep Use Full Life Original Use…

a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2020? $ b. Assume that management has agreed to accept Victor's proposed useful life change for the Building, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Building in 2021? $ c. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Machinery in 2020? $ d. Assume that management has agreed to accept Victor's proposed useful life change for the Machinery, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Machinery in 2021? $

a. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Building in 2020? $ b. Assume that management has agreed to accept Victor's proposed useful life change for the Building, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Building in 2021? $ c. Using the original values, how much annual depreciation expense did Carla Vista recognize for the Machinery in 2020? $ d. Assume that management has agreed to accept Victor's proposed useful life change for the Machinery, but decides to retain the original salvage value estimate. How much annual depreciation expense will Carla Vista recognize for the Machinery in 2021? $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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