A building with a cost of $165,000 has an estimated residual value of $66,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? Do not round intermediate calculations. $fill in the blank 1 b. What is the book value at the end of the fifth year of use? $fill in the blank 2 c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $45,000, what is the depreciation expense for each of the remaining 5 years? $fill in the blank 3
A building with a cost of $165,000 has an estimated residual value of $66,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method. a. What is the amount of the annual depreciation? Do not round intermediate calculations. $fill in the blank 1 b. What is the book value at the end of the fifth year of use? $fill in the blank 2 c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $45,000, what is the depreciation expense for each of the remaining 5 years? $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A building with a cost of $165,000 has an estimated residual value of $66,000, has an estimated useful life of 9 years, and is depreciated by the straight-line method.
a. What is the amount of the annual depreciation? Do not round intermediate calculations.
$fill in the blank 1
b. What is the book value at the end of the fifth year of use?
$fill in the blank 2
c. If at the start of the sixth year it is estimated that the remaining life is 5 years and that the residual value is $45,000, what is the depreciation expense for each of the remaining 5 years?
$fill in the blank 3
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