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5. CDE leases land and secures the landowner's permission to erect a warehouse on the leased site. The lease has 25 years to run from
5. CDE leases land and secures the landowner's permission to erect a warehouse on the leased site. The lease has 25 years to run from the time CDE completes the warehouse at a cost of $300,000. The warehouse is expected to last 50 years. In connection with the warehouse, CDE's annual depreciation should be: a. $6,000.00 b. $7,500.00 c. $12,000.00 d. The entire $300,000 should be expensed the first year. 10. An example of an experience gain or loss is: a. The actual employee turnover rate is higher than projected. b. The discount rate used for an obligation is increased from 5% to 6%. c. The assumption for salary increases is reduced from 3% to 2.5%. d. The funding method is changed to the accumulated benefit method
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