A building with a cost of $405,000 has an estimated residual value of $81,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? b. What is the book value at the end of the twentieth year of use? c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $25,000, what is the depreciation expense for each of the remaining 20 years?
A building with a cost of $405,000 has an estimated residual value of $81,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? b. What is the book value at the end of the twentieth year of use? c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $25,000, what is the depreciation expense for each of the remaining 20 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 $405,000 has an estimated residual value of $81,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method.
a. What is the amount of the annual depreciation?
b. What is the book value at the end of the twentieth year of use?
c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $25,000, what is the depreciation expense for each of the remaining 20 years?
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