Rockefeller Center is a building complex in midtown Manhattan that was originally built by the Rockefeller family in the 1930s.

According to Wikipedia, construction costs were reportedly about $250 million, and the land was later purchased for $400 million. In 2000, the land and buildings were sold for about $1.85 billion.14 This means that the original owners of Rockefeller Center made a great deal of money over the approximately 60 years they owned it. However, if they were like most property owners, they recorded depreciation each year on the $250 million cost of the buildings.
A. Do you think recording depreciation expense on buildings is appropriate for financial statement purposes? Explain.
B. Do you think that, as an analyst, you would consider depreciation of office buildings to be relevant and useful information? Explain.
C. Would it make sense for the new owners to compute depreciation assuming zero salvage value? If not, what salvage value would you consider appropriate?