Question
1. In 1995, Wallet Manufacturing Company constructed a plant for $500,000. In 2005, the following expenditures were made related to the plant: New roof -$20,000,
1. In 1995, Wallet Manufacturing Company constructed a plant for $500,000. In 2005, the following expenditures were made related to the plant: New roof -$20,000, Changing the useful life from 20 to 25 years, Painting - $10,000, Property tax - $25,000. A full year of depreciation has been taken on the plant each year since 1995 using straight-line depreciation. Assume the residual value remains $50,000. What should the basis be for depreciation of the plant in 2005?
Answer:
A. $275,000
B. $295,000
C. $305,000
D. $330,000
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Statistics For Engineers And Scientists
Authors: William Navidi
3rd Edition
73376345, 978-0077417581, 77417585, 73376337, 978-0073376332
