In $1998,$ Crane Company completed the construction of a building at a cost of $$2,025,000$ 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 $$60,000$ at the end of that time.

Early in $2009,$ an addition to the building was constructed at a cost of $$505,000.$ 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 $$20,250.$

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$$

$\frac{?}{yr}.$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

$($b$)$

Your answer is correct.

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

Annual depreciation from $2009$ through $2026$$

$/$yr$.$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

$($c$)$

Your answer is correct.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in $2027.($If no entry is

required, select $"$No entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when

amount is entered. Do not indent manually. List debit entry before credit entry.$)$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

$($d$)$

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 $