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Tuft Hardware Consultants purchased a bulding for $635,000 and depreciated it on a straight-line basis over a 35 -year period. The estimated residual value is
Tuft Hardware Consultants purchased a bulding for $635,000 and depreciated it on a straight-line basis over a 35 -year period. The estimated residual value is $110,000. After using the bullding for 15 years. Tut realized that wear and tear on the building would woar it out before 35 years and that the estimated residual value shoukf be 593 , 000, Starting with the 16 th year. Tuft began depreciating the building over a revised total life of 20 years using the new residual value. Journalize depreciation expense on the building for years 15 and 16 . (Record debits first, then credts. Select the explanation on the last line of the journal entry table.) Beain by ioumalizing the depreciation on the building for year 15
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