1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach? a. $190,114 b. 211,326 c. 138,358 d. 109,119 e. 168,700

1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach? a. $190,114 b. 211,326 c. 138,358 d. 109,119 e. 168,700

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 2CE

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Question

$1,300 sq.f.t building costs $110 per sq.ft to build new. Depreciation is estimated to be 10%. The land is estimated at $40,000. What is the value estimated by the cost approach?

a. $190,114

b. 211,326

c. 138,358

d. 109,119

e. 168,700

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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