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Tristen Company purchased a five-story office building on January 1,2022 , at a cost of $4,400,000. The bullding has a residual value of $325,000 and
Tristen Company purchased a five-story office building on January 1,2022 , at a cost of $4,400,000. The bullding has a residual value of $325,000 and a 20 -year Ilfe. The straight-IIne depreciation method is used. On June 30,2024 , construction of a sixth floor was completed at a cost of $1,435,000. Required: Calculate the depreciation on the bullding and bullding addition for 2024 and 2025 , assuming that the addition did not change the life or residual value of the bullding. (Hint: Calculate depreclatlon for the bullding and addition separately. Assume the addition has no residual value and an estimated life equal to the remaining useful llfe of the bullding.)
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