Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be usfor twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determirthat the warehouse will be useful for only another fifteen years.A. Calculate annual depreciation expense for the first four years.$ 171,000B. Determine the depreciation expense for the final fifteen years of the asset's life.11,400 XFeedbackV Check My WorkWhen revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciationamount.C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank.Depreciation Expense171,000 XAccumulated Depreciation-Warehouse171,000

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Description: Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be usfor twenty-five years. Colquhoun uses the straight-line depreciation method for all wa

Depreciation under straight line method = (Cost- salvage value)/useful life

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Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun deter that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. 171,000 x B. Determine the depreciation expense for the final fifteen years of the asset's life. 11,400 x Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciat amount. C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Depreciation Expense v 171,000 X Accumulated Depreciation-Warehouse v 171,000 x

Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun deter that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. 171,000 x B. Determine the depreciation expense for the final fifteen years of the asset's life. 11,400 x Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciat amount. C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Depreciation Expense v 171,000 X Accumulated Depreciation-Warehouse v 171,000 x

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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