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Depreciation 25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged $5,000 to replace. Roof was replaced 5 years ago and
Depreciation 25 year old bldg. Bldg in average condition. Cost is $800,000. Overhead door damaged $5,000 to replace. Roof was replaced 5 years ago and has a 20-year guarantee; the cost to replace it is $60,000. HVAC components should last another five years and were installed when the building was built. The cost to replace the HVAC is $72,000. The offices were just redecorated at a cost of $10,000, and will not need redecorating for another 5 years. The life of the long-lived items is 100 years. What is the total physical deterioration? What is the total depreciated value of the long-lived items? $489,750 $243,000 $653,000 None of the other answer options are correct.
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