Martinez Company constructed a building at a cost of $2,464,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value.In January 2018, a new roof was installed at a cost of $336,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $179,200.     What amount of depreciation should have been charged annually from the years 1998 to 2017? (Assume straight-line depreciation.)Depreciation from the years 1998 to 2017 $   SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   What entry should be made in 2018 to record the replacement of the roof? (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit         (To record the disposition of the old roof.)        (To record the installation of the new roof.)    SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   Prepare the entry in January 2018 to record the revision in the estimated life of the building, if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit        SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   What amount of depreciation should be charged for the year 2018?Depreciation for the year 2018 (Assume the cost of the old roof is removed) $ Depreciation for the year 2018 (Assume the cost of the new roof is debited to accumulated depreciation - building) $   Click if you would like to Show Work for this question:Open Show Work  SHOW LIST OF ACCOUNTSLINK TO TEXTLINK TO TEXT   Question Attempts: 0 of 3 used SAVE FOR LATERSUBMIT ANSWER  Please answer all sections of my questions

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Asked Nov 25, 2019
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Martinez Company constructed a building at a cost of $2,464,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value.

In January 2018, a new roof was installed at a cost of $336,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $179,200.
 
 
 
 
 
What amount of depreciation should have been charged annually from the years 1998 to 2017? (Assume straight-line depreciation.)

Depreciation from the years 1998 to 2017  
$
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
What entry should be made in 2018 to record the replacement of the roof? (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 
(To record the disposition of the old roof.)
   
 
 
 
 
 
 
(To record the installation of the new roof.)
   
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
Prepare the entry in January 2018 to record the revision in the estimated life of the building, if necessary. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 
 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
What amount of depreciation should be charged for the year 2018?

Depreciation for the year 2018 (Assume the cost of the old roof is removed)  
$
 
Depreciation for the year 2018 (Assume the cost of the new roof is debited to accumulated depreciation - building)  
$
 
 

 

Click if you would like to Show Work for this question:
Open Show Work

 

 

SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
 
 
 
Question Attempts: 0 of 3 used  
SAVE FOR LATER
SUBMIT ANSWER
 
 

Please answer all sections of my questions

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Expert Answer

Step 1

Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.

There are different methods available for computation of depreciation like, Straight line method, sum of digits, double declining method.

Depreciation under straight-line depreciation

                                   = (Cost of the asset – salvage value) ÷ Estimated Useful life of the asset

Step 2

Computation of Depreciation

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Computation of Depreciation Amount Amount Particulars value of Asset No of years 2464000 40 Depreciation Accumulated Depreciation up to 2017 Depreciation per annum 1998 -2017 Total Depreciation charged value of Asset as on Jan 2018 Cost of asset Less: Total Depreciation charged Balance as on Jan 2018 61600 61600 19 1170400 2464000 1170400 1293600

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Step 3

Computation of Depreci...

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Computation of Depreciation Amount Amount Old roof New Roof value added 1293600 Particulars Balance as on Jan 2018 Depreciated Cost of Old Roof removed 1293600 94080 1199520 1293600 Addition made 336000 336000 Total Value of Asset Useful Life Depreciation for 2018 1535520 1629600 25 25 61420.8 65184

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