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    Revised Depreciation

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    Accumulated Useful Life
    Type of Date Depreciation In Years Salvage Value
    Asset Acquired Cost 1/1/2002 Old Proposed Old Proposed
    Building 1/1/1996 $800,000 $114,000 40 50 $40,000 $70,000
    Warehouse 1/1/1999 100,000 11,400 25 20 5,000 3,600

    How would calculate the revised annual depreciation as of 2002?

    And how do you set up the journal entries?

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    Solution Summary

    The solution explains how to calculate the revised depreciation given a change in useful life and a change in the salvage value.