Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated expenditures were 5,600,000, actual interest was 562,000, and avoidable interest was 272,000. Salvage value is 1,150,000, and the useful life is 40 years. Calculate depreciation expense for the first full year using the slm method.

Rex company constructed a building at a cost of 13,650,000. Weighted-average accumulated expenditures were 5,600,000, actual interest was 562,000, and avoidable interest was 272,000. Salvage value is 1,150,000, and the useful life is 40 years. Calculate depreciation expense for the first full year using the slm method.

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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
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