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Jack Reese, the new controller of Muckenthaler Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2010. Here are his findings: AccumulatedType of Date Depreciation, (in years) Salvage Value Asset Acquired Cost Jan. 1, 2010 Old Proposed Old ProposedAll assets are depreciated by the straight-line method. Muckenthaler Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Jack’s proposed changes. (The “Proposed” useful life is total life, not remaining life.) (a) Compute the revised annual depreciation on each asset in 2010. (Round to 0 decimal places, i.e. 2,350.) Building $ Warehouse $ (b) Prepare the entry to record depreciation on the building in 2010. Date Account/Description Debit Credit
Jack Reese, the new controller of Muckenthaler Company, has reviewed the expected usefullives and salvage values of selected depreciable assets at the beginning of 2010. Here are hisfindings:…
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