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Brief Exercise 9-7 On January 1, 2015, the Morgantown Company ledger shows Equipment $40,400 and Accumulated Depreciation Equipment $10,940. The depreciation resulted from using the
Brief Exercise 9-7 On January 1, 2015, the Morgantown Company ledger shows Equipment $40,400 and Accumulated Depreciation Equipment $10,940. The depreciation resulted from using the straight-line method with a useful life of 8 years and salvage value of $4,300. On this date, the company concludes that the equipment has a remaining useful life of only 5 years with the same salvage value. Compute the revised annual depreciation. Revised annual depreciations IFRS 9-4 Beckham Company constructed a warehouse for $280,000. Beckham estimates that the warehouse has a useful life of 20 years and no residual value. Construction records indicate that $50,000 of the cost of the warehouse relates to its heating, ventilation, and air conditioning (HVAC) system, which has an estimated useful life of only 10 years. Compute the first year of depreciation expense using straight-line component depreciation. Depreciation Expenses
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