Question
During 2014, Chan's Book Store $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Chan's $1,400 for
During 2014, Chan's Book Store $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Chan's $1,400 for a building permit, which Chan's paid. Chan's also paid $15,320 for architect's fees. The construction cost of $690,000 was financed by a long-term note payable, with interest cost of $28,300 paid at completion of the project. The building was completed June 30, 2014. Chan's depreciates the building by the straight-line method over 35 years, with estimated residual value of $337,000.
What is the depreciation on the building for 2014 using the straight-line method.
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