E7-22A. (Learning Objective 2: Changing a PPEs useful life) Assume G-1 Designing Consultants purchased a building for
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E7-22A. (Learning Objective 2: Changing a PPE’s useful life) Assume G-1 Designing Consultants purchased a building for $420,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $56,000. After using the building for 20 years, G-1 realized that the building will remain useful for only 15 more years. Starting with the 21st year, G-1 began depreciating the building over a revised total life of 35 years and decreased the residual value to $13,000. Record depreciation expense on the building for years 20 and 21.
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Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
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