Ch 10 Exam Revision of Depreciation A building with a cost of $480,000 has an es

Question

Ch 10 Exam Revision of Depreciation A building with a cost of $480,000 has an estimated residual value of $192,000, has an estimated useful Iife of 18 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 tenth year of use? c. If at the start of the eleventh year it is estimated that the remaining ife is 10 years and that the residual value is $140,000, what is the depreciation expense for each of the remaining 10 years? Previous

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Cost of Building       480,000.00 Residual Value of building       192,000.00 Life in years                 18.00 a)annual Depreciation = (480,000 - 192,000)/18         16,000.00 b)Depreciation for 10 Years = 16000 * 10       160,000.00 Book Value after 10 Years = 480,000 - 160,000       320,000.00 c) Book Value       320,000.00 Remaining life in years                 10.00 Residual Value       140,000.00 Depreciation Expense = (320,000 - 140,000)/10         18,000.00

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