Exercise 11-12 and 11-14 Having trouble finding the last part of these 2 questio

ID: 2494719 • Letter: E

Question

Exercise 11-12 and 11-14 Having trouble finding the last part of these 2 questions on wiley. Help and explanation will be greatly appreciated thank you !

Exercise 11-12 In 1987, Herman Moore Company completed the construction of a building at a cost of $2,360,000 and first occupied it in January 1988. It was estimated that the building will have a useful life of 40 years and a salvage value of $70,800 at the end of that time. Early in 1998, an addition to the building was constructed at a cost of $590,000. 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 $23,600 In 2016, it is determined that the probable life of the building and addition will extend to the end of 2047, or 20 years beyond the original estimate. Your answer is correct. Using the straight line method compute the annual depreciation that would have been charged from 1988 through 1997·Round answer to odec mal places, eg 45892. Annual depreciation from 1988 through 1997 5723 yr SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Your answer is correct. Compute the annual depreciation that would have been charged from 1998 through 2015. (Round answer to 0 decimal places, e.g. 45,892.) Annual depreciation from 1998 through 2015 761 10 yr

Explanation / Answer

Calculation of Depreciation charged , beginning with 2016:

Cost of the Building (2360000 +590000)

$ 2,950,000

Less: Depreciation charged from 1988 through 1997 = $57230 *10 Years

$ (572,300)

Less: Depreciation charged from 1998 through 2015 = $76110 *18 Years

$ (1,369,980)

Book Value in the end of year 2015 =

$ 1,007,720

Less: Estimated salvage value = (70800+23600)

$ (94,400)

Depreciable amount

$ 913,320

Estimated remaining useful life = (2016 to 2047) =

32 Years

Annual Depreciation charged , beginning with 2016 = 913320 / 32 =

$ 28,541