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Revision of Depreciation A warehouse with a cost of $886,600 has an estimated residual value of $80,600, has an estimated useful life of 20 years,

Revision of Depreciation

A warehouse with a cost of $886,600 has an estimated residual value of $80,600, has an estimated useful life of 20 years, and is depreciated by the straight-line method.

a. Determine the amount of the annual depreciation. $

b. Determine the book value after 13 full years of use. $

c. Assuming that at the start of year 14 the remaining life is estimated to be 15 years and the residual value is estimated to be $70,200, determine the depreciation expense for each of the remaining 15 years. $

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