3 Podunk Pole Company started business in July 1, 2015 with the following purchases: 4 5 17 3 9 10 11 14 16 TE Useful life Residual value Dept. Method Land $225,000 Indefinite Building $1,250,000 40 years $450,000 Straight Line Parking Lot, Lighting & Fencing $60,000 15 years $6,950 Double Declining Balance Processing Equipment $228,000 10 years $22,800 Units of Production Office Equipment $52,000 5 years $7,500 Double Declining Balance 12 At the end of 2018, the company has come to the conclusion that the building will not last 40 years. 13 The estimated useful life should have been 38.5 years with a salvage value of $462,500 15. What is the annual depreciation for the building for 2019? 17 Original depreciation per year Book value 12-31-18 Depreciation for 2019 The Processing Equipment is rated to run for a total of 60.000 hours based on three shifts in ten years. Prepare a depreciation schedule for land improvements, processing equipment and office equipment Land Improvements Beg BV Depr Accum Depr 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 19 20 21 22 22 24 25 25 27 3 13 AAR 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Beg BV Depr Accum Depr Per hour depreciation Machinery 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Hours used 2,200 5,900 6.200 5,800 6.100 6.000 5,750 5.900 5.800 6,100 4,250 60,000 Beg BV Depr Accum Depr Office Equipment 2015 2016 2017 2018 2019