Lindy Weink, the new controller of Cullumber 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: Type of Asset Building Equipment Date Acquired Jan. 1, 2009 Jan. 1.2022 Cost $800,300 125.000 Total Useful Life in Years Current Proposed 30 20 Residual Value Current $39,600 4.500 Proposed $60,440 3,600 After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method. Cullumber Company has a December 31 year end.
Lindy Weink, the new controller of Cullumber 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: Type of Asset Building Equipment Date Acquired Jan. 1, 2009 Jan. 1.2022 Cost $800,300 125.000 Total Useful Life in Years Current Proposed 30 20 Residual Value Current $39,600 4.500 Proposed $60,440 3,600 After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method. Cullumber Company has a December 31 year end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Type of Asset
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Equipment
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Lindy Weink, the new controller of Cullumber 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:
Date Acquired
Jan. 1, 2009
Jan. 1.2022
Cost
$800,300
125,000
Total Useful Life in Years
Current Proposed
30
20
3.33/20 E
Residual Value
Current Proposed
$39,600
$60,440
4.500
3,600
After discussion, management agrees to accept Lindy's proposed changes. All assets are depreciated by the straight-line method.
Cullumber Company has a December 31 year end.
Transcribed Image Text:Calculate the carrying amount of each asset as at January 1, 2024.
Building
$
tA
Equipment $
Carrying amount
2
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