A building that was purchased on December 31, 2006, for $2,500,000 was originally estimated to have a

Question:

A building that was purchased on December 31, 2006, for $2,500,000 was originally estimated to have a life of 50 years with no salvage value at the end of that time. Depreciation has been recorded through 2020. During 2021, an examination of the building by an engineering firm discloses that its estimated useful life is 15 years after 2020. What should be the amount of depreciation for 2021?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...

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