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Encanto Corporation purchased a building on December 31, 20x0 for $1,700,000. At that time, Encanto believed the building would have a useful life of
Encanto Corporation purchased a building on December 31, 20x0 for $1,700,000. At that time, Encanto believed the building would have a useful life of 23 years and estimated a residual value of $136,000. It is now March 31, 20x6, and Encanto has received new information that suggests the useful life of the building will likely be 30 years with a residual value of $88,000. Encanto uses the straight-line method of calculating depreciation expense. What should the company record as depreciation expense in 20x6?
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