Frank White the New Controller of Youngman Company, Has Reviewed

question 310

Essay

Frank White the new controller of Youngman Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2018. His findings are as follows. All assets are depreciated by the straight-line method. Youngman Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Frank's proposed changes.
Instructions
(a) Compute the revised annual depreciation on each asset in 2018. (Show computations.)
(b) Prepare the entry (or entries) to record depreciation on the building in 2018.

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Definitions:

Net Income

The total profit of a company after accounting for all costs and expenses, including taxes and interest.

Division

A large section or branch of a company that operates somewhat independently while remaining part of the larger entity.

Final Distribution

The process of allocating the last portion of assets or earnings among shareholders, partners, or other stakeholders after all obligations have been met.

Cash

Liquid assets held in the form of currency or bank accounts that can be readily used for transactions.