In $1998,$ Bonita Company completed the construction of a building at a cost of $$2,180,000$ and first occupied it in January $1999.$ It was

estimated that the building will have a useful life of $40$ years and a salvage value of $$64,800$ at the end of that time.

Early in $2009,$ an addition to the building was constructed at a cost of $$545,000.$ At that time, it was estimated that the remaining life

of the building would be$,$ as originally estimated, an additional $30$ years, and that the addition would have a life of $30$ years and a

salvage value of $$21,800.$

In $2027,$ it is determined that the probable life of the building and addition will extend to the end of $2058,$ or $20$ years beyond the

original estimate.

$($a$)$

Your answer is correct.

Using the straight$-$line method, compute the annual depreciation that would have been charged from $1999$ through $2008.$

Annual depreciation from $1999$ through $2008,$$$\frac{,}{y}r.$

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$($b$)$

Correct Answer

Your answer is correct.

Compute the annual depreciation that would have been charged from $2009$ through $2026.$

Annual depreciation from $2009$ through $2026,$$$\frac{,}{y}.$

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Solution

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$($c$)$

$($d$)$

X Your answer is incorrect.

Compute the annual depreciation to be charged, beginning with $2027.($Round answer to $0$ decimal places, e$.$g$.45,892.)$

Annual depreciation expense$-$building $

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