Question
At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $13.8 million. $10.8 million of the purchase price was allocated to the building.
| At the beginning of 2014, Robotics Inc. acquired a manufacturing facility for $13.8 million. $10.8 million of the purchase price was allocated to the building. Depreciation for 2014 and 2015 was calculated using the straight-line method, a 20-year useful life, and a $2.8 million residual value. In 2016, the estimates of useful life and residual value were changed to 15 years and $680,000, respectively. |
| What is depreciation on the building for 2016? |
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
