Question
Just minus For minus YouJustForYou Hardware Consultants purchased a building for $ 540 comma 000$540,000 and depreciated it on a straight-line basis over a 3030-year
Just minus For minus YouJustForYou Hardware Consultants purchased a building for $ 540 comma 000$540,000 and depreciated it on a straight-line basis over a 3030-year period. The estimated residual value is $ 120 comma 000$120,000. After using the building for 15 years, Just minus For minus YouJustForYou realized that wear and tear on the building would wear it out before3030years and that the estimated residual value should be$ 106 comma 000$106,000.Starting with the 16th year,Just minus For minus YouJustForYoubegan depreciating the building over a revised total life of2020years using the new residual value. Journalize depreciation expense on the building for years 15 and 16. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Begin by journalizing the depreciation on the building for year 15.
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