Question
In 1993, Sheffield Company completed the construction of a building at a cost of $4,680,000 and first occupied it in January 1994. It was estimated
In 1993, Sheffield Company completed the construction of a building at a cost of $4,680,000 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 $210,200 at the end of that time. Early in 2002, an addition to the building was constructed at a cost of $1,755,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 32 years, and that the addition would have a life of 32 years and a salvage value of $23,800. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2043 or 10 years beyond the original estimate
Compute the annual depreciation that would have been charged from 2002 through 2021. Annual depreciation from 2002 through 2021 $enter the annual depreciation from 2002 through 2021 in dollars per year / yr.
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