Greg Maddox Company constructed a building at a cost of $ 5,060,000 and occupied

Question

Greg Maddox Company constructed a building at a cost of $ 5,060,000 and occupied it beginning in January 1995. It was estimated at that time that its life would be 40 years, with no salvage value.

In January 2015, a new roof was installed at a cost of $ 690,000 , 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 $ 368,000        

  

No.

Account Titles and Explanation

Debit

Credit

1

(To record the disposition of the old roof.)

2

(To record the installation of the new roof.)

  

Account Titles and Explanation

Debit

Credit

  

Your answer is correct. What amount of depreciation should have been charged annually from the years 1995 to 2014? (Assume straight-line depreciation.)
Depreciation from the years 1995 to 2014

   $126500

  

Explanation / Answer

Greg Maddox Company constructed a building at a cost of $ 5,060,000 and occupied

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