Everyday Hardware Consultants purchased a building for $ 540,000 and depreciated it on a straight-line basis over
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Everyday Hardware Consultants purchased a building for $ 540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $ 96,000. After using the building for 15 years, Everyday realized that wear and tear on the building would wear it out before 40 years and that the estimated residual value should be $ 80,000. Starting with the 16th year, Everyday began depreciating the building over a revised total life of 25 years using the new residual value. Journalize depreciation expense on the building for years 15 and 16.
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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