Question

In 1993, Bramble Company completed the construction of a building at a cost of $2,280,000 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 $68,800 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $570,000. 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 $22,800. 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.

(a) 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.

Answer 1

Solutiony styaih tine mel f Cost a%u 600 alviage velue $ G&s0D 2211200 Useful. fe чо чеarse etiation 2 s0 Cost ST0OUD Sulvage vale 22800 ऽ200 Useful ife Boyears Deeciation 8 2u0. Annual epae.ciation= Ss2&D+ 1S240 S13 520 No entry Reqired 3