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In 1 9 9 8 , Nash Company completed the construction of a building at a cost of $ 2 , 0 4 0 ,
In Nash Company completed the construction of a building at a cost of $ and first occupied it in January It
was estimated that the building will have a useful life of years and a salvage value of $ at the end of that time.
Early in an addition to the building was constructed at a cost of $ At that time, it was estimated that the remaining
life of the building would be as originally estimated, an additional years, and that the addition would have a life of years and a
salvage value of $
In it is determined that the probable life of the building and addition will extend to the end of or years beyond the
original estimate.
a
Using the straightline method, compute the annual depreciation that would have been charged from through
Annual depreciation from through $ yr
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b
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