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In 1993, Marigold Company completed the construction of a building at a cost of $2,080,000 and first occupied it in January 1994. It was estimated
In 1993, Marigold Company completed the construction of a building at a cost of $2,080,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $62,400 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $520,000. 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 $20,800. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate. x Your answer is incorrect. Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.) Annual depreciation expense-building $ 24668 e Textbook and Media List of Accounts
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