A building with a cost of $450,000 has an estimated residual value of $90,000, has an estimated useful life of 18 years, and is depreciated by the straight-line method. a.  What is the amount of the annual depreciation? $fill in the blank 1 b.  What is the book value at the end of the tenth year of use? $fill in the blank 2 c.  If at the start of the eleventh year it is estimated that the remaining life is 10 years and that the residual value is $20,000, what is the depreciation expense for each of the remaining 10 years?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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A building with a cost of $450,000 has an estimated residual value of $90,000, has an estimated useful life of 18 years, and is depreciated by the straight-line method.

a.  What is the amount of the annual depreciation?
$fill in the blank 1

b.  What is the book value at the end of the tenth year of use?
$fill in the blank 2

c.  If at the start of the eleventh year it is estimated that the remaining life is 10 years and that the residual value is $20,000, what is the depreciation expense for each of the remaining 10 years?

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