Victor mineli, the new controller of crane company, has reviewed the

Victor Mineli, the new controller of Crane Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2017. Here are his findings:

Type of 

  

Date

      

Accumulated
Depreciation,

  

Useful Life (in years)

  

Salvage Value

Asset

  

Acquired

  

Cost

  

Jan. 1, 2017

  

Old

  

Proposed

  

Old

  

Proposed
Building   Jan. 1, 2009   $772,000   $141,800   40   48   $63,000   $35,200
Warehouse   Jan. 1, 2012   164,000   31,690   25   20   5,550   5,400

All assets are depreciated by the straight-line method. Crane Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Victor’s proposed changes. (The “Proposed” useful life is total life, not remaining life.)

 
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