Question

In 1993, Waterway Company completed the construction of a building at a cost of $2,380,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $71,200 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $595,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $23,800. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate. Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003. Annual depreciation from 1994 through 2003 $ / yr. eTextbook and Media List of Accounts Compute the annual depreciation that would have been charged from 2004 through 2022. Annual depreciation from 2004 through 2021 $ / yr. eTextbook and Media List of Accounts Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (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 eTextbook and Media List of Accounts Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.) Annual depreciation expense—building $

Answer 1

O Gampialio Anrue dapoacialio Cstaight (ive he) from 1993 2003 Ca aldng 238000 (H20) in SaluaValue 2308,300 4oy Deproiatu d Sun ( 57720 2 308 800 40 2022 from 2004 570 Tuddir fo Abane Depoaciation on Depouciatir on Addituors $595 000 Adelituery Cent 2300 iSalung Valu 5H 20 Warful life 51 200 9040 Dpeati oAddtn Teta dlapreciatun(f 5770 +$ 104 $ 76760

No try eguiud forlauisiem Computctity Annral derucdin to be Changed fim begrnihg 2o dapea atud 28 years yearo Ito202 Cest $2,380 000 dapat (1614, 160) (54300 * 23) Boal Ualue 763840 La ar Value 69 2640 am2022 to 2053-rom beg vuny So befal Qurnaiung 32 yy Annural dlapoeciatim 21645 hom Legi fram 2004-2024 Additir Cast kValur 252,280 23 800 Salurag Value 2 28 480

Additins depri abl Amt 228 480 32yrs umaining 7140 L8480 Pepret atioro 31 28785 fon 202