Question
Revision of Depreciation A building with a cost of $1,125,000 has an estimated residual value of $225,000, has an estimated useful life of 36 years,
Revision of Depreciation
A building with a cost of $1,125,000 has an estimated residual value of $225,000, has an estimated useful life of 36 years, and is depreciated by the straight-line method.
a. What is the amount of the annual depreciation? $fill in the blank 1
b. What is the book value at the end of the twentieth year of use? $fill in the blank 2
c. If at the start of the twenty-first year it is estimated that the remaining life is 20 years and that the residual value is $45,000, what is the depreciation expense for each of the remaining 20 years? $fill in the blank 3
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