(a) Using Straight line method : | ||
Annual depreciation that would have been charged from 1991 - 1998 | ||
Cost of Bulding | $ 5,000,000.00 | |
Less : Salvage Value | $ (300,000.00) | |
Depreciable value of Building | $ 4,700,000.00 | |
Life of the Building | Years | 45 |
Annual depreciation | per Year | $ 104,444.44 |
(b) | ||
Annual depreciation that would have been charged from 1998 - 2018 | ||
Building | (5000000-300000)/45 | $ 104,444.44 |
Additions : | (1800000-25000)/37 | $ 47,972.97 |
Annual depreciation | Per Year | $ 152,417.42 |
© No Entry Required… | ||
(d) Revised annual depreciation | ||
Building | ||
Book value: ($5000000-2924444.32) | $2,075,556 | |
Less: Salvage value | $ (300,000.00) | |
1,775,556 | ||
Remaining useful life | 32 years | |
Annual depreciation | 55486.12 | |
*$104444.44 X 28 years = | 2924444.32 | |
Addition | ||
Book value: (1800000-959459.4_) | 840540.6 | |
Less: Salvage value | -25000 | |
815,541 | ||
Remaining useful life | 30 | |
Annual depreciation | 27184.69 | |
**$47972.97 X 20 years = | 959459.4 | |
Annual depreciation expense—building (55486.12+27184.69) | 83031 | |
E11-2 (LOI,2 (Depreciation Computation-Addition, Change in Estimate) In 1990, Lincoln Company completed the construction of a...
*Exercise 11-12 In 1990, Riverbed Company completed the construction of a building at a cost of $2,040,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $61,200 at the end of that time Early in 2001, an addition to the building was constructed at a cost of $510,000. At that time, it was estimated that the remaining life of the building would be,...
deprecio me sot alresu Problem 3 (Depreciation Computation - Addition, Change in Estimate) In 1990, Herman Moore Company completed the construction of a building at a cost of $2,000,000 and occupied it in January 199). It was estimated that the building will have a useful life of 40 years and a salu value of $60,000 at the end of that time. Bary in 2001, an addition to the buildine was constructed at a cost of $500,000. At that time, it...
1 In 1990, Kingbird Company completed the construction of a building at a cost of $2040,000 and first occupied it in January 1991.It was estimated that the building will have a useful life of 40 years and a salvage value of $61,200 at the end of that time Early in 2001, an addition to the building was constructed at a cost of $510,000. At that time, It was estimated that the remaining life of the building would be, as origlnally...
E11.12 (LO 1, 2) (Depreciation Computation—Addition, Change in Estimate) In 1993, Herman Moore Company completed the construction of a building at a cost of $2,000,000 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 $60,000 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $500,000. At that time, it was estimated that...
In 1990, Splish Company completed the construction of a building at a cost of $2,320,000 and first accupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $69,600 at the end of that time Early in 2001 an addition to the building was constructed at a cost of $580,000. At that ti e, it was estimated that the remaining life of the building would be as...
Exercise 11-12 In 1990, Whispering Company completed the construction of a building at a cost of $2,480,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $74,400 at the end of that time. Early in 2001, an addition to the building was constructed at a cost of $620,000. At that time, it was estimated that the remaining life of the building would be,...
Exercise 11-12 In 1990, Oriole Company completed the construction of a building at a cost of $2,400,000 and first occupied it in January 1991. It was estimated that the building will have a useful life of 40 years and a salvage value of $72,000 at the end of that time. Early in 2001, an addition to the building was constructed at a cost of $600,000. At that time, it was estimated that the remaining life of the building would be,...
E11-13 (L01,2) (Depreciation—Replacement, Change in Estimate) Greg Maddox Company constructed a building at a cost of $2,200,000 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 $300,000, 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...
In 1993, Blossom Company completed the construction of a building at a cost of $2,460,000 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 $74,400 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $615,000. At that time, it was estimated that the remaining life of the building would be, as originally...
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...