Question3 20 pts In 2000, Paradise Condo Inc. bought a new apartment building th

Question

Question3 20 pts In 2000, Paradise Condo Inc. bought a new apartment building that was rented out to families on June 21st, 2000. The purchase cost was 680008 dollars and in addition it had to spend 18585 dollars remodeling the space. Paradise Condo estimated that in 2030 the building would have a net salvage value of $100,000. Using the US Straight Line Depreciation Schedule, compute the value of depreciation recorded in the accounting books in the year 2000. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas) 686950.0000 Question 4 20 pts TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 247246 dollars and in addition it had to spend 25337 dollars adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the total value of depreciation recorded in the accounting books if TVM consulting decides to sell the building on April 15th, 2004 (i.e. summation of all annual depreciation amounts recorded throughout the years of usage). (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas) 249437.0500

Explanation / Answer

Answer(3)

Depreciation rate =( Fixed Assest - Salvage value)/ No.of Years

= 680008- 100000) /30   

= 580008/30

= $22666.93

= $22667

Therefore, Book Value of Depreciation at end of 2000 = $22667

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