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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Revision of Depreciation

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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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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