# (Learning Objective 3: Compute and record depreciation after a change in usefullife of the asset) Fun Town Amusement Park paid \$500,000 for a concession stand. Fun Townstarted out depreciating the building using the straight-line method over 25 years with a residualvalue of zero. After using the concession stand for four years, Fun Town determines that thebuilding will remain useful for only five more years. Record Fun Town’s depreciation on theconcession stand for year five using the straight-line method.

Question

(Learning Objective 3: Compute and record depreciation after a change in useful
life of the asset) Fun Town Amusement Park paid \$500,000 for a concession stand. Fun Town
started out depreciating the building using the straight-line method over 25 years with a residual
value of zero. After using the concession stand for four years, Fun Town determines that the
building will remain useful for only five more years. Record Fun Town’s depreciation on the
concession stand for year five using the straight-line method.

### Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in