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Exercise 1 1 - 5 ( Algo ) Depreciation methods; asset addition; partial period [ L 0 1 1 - 2 , 1 1 -
Exercise Algo Depreciation methods; asset addition; partial period L
Tristen Company purchased a fivestory office building on January at a cost of $ The building has a residual value of $ and a year life. The straightline depreciation method is used. On June construction of a sixth floor was completed at a cost of $
Required:
Calculate the depreciation on the building and building addition for and assuming that the addition did not change the life or residual value of the building. Hint: Calculate depreciation for the building and addition separately. Assume the addition has no residual value and an estimated life equal to the remaining useful life of the building.
tableYearDepreciationBuildingAddition
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