Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The

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Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.


Required:
Calculate the depreciation on the building and building addition for 2021 and 2022 assuming that the addition did not change the life or residual value of the building.

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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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