A number of major structural repairs completed at the beginning of the current fiscal year at a cost of $1,000,000 are expected to extend the life of a bu original estimate. The original cost of the building was $6,552,000, and it has been depreciated by the straight-line method for 25 years. Estimated residi has been ignored. The related accumulated depreciation account after the depreciation adjustment at the end of the preceding fiscal year is $4,550,000. a. What has the amount of annual depreciation been in past years? b. What was the original life estimate of the building? years c. To what account should the $1,000,000 be debited? d. What is the book value of the building after the extraordinary repairs have been made? e. What is the expected remaining life of the building after the extraordinary repairs have been made? years 4 f. What is the amount of straight-line depreciation for the current year, assuming that the repairs were completed at the very beginning of the current year? the nearest dollar.

A number of major structural repairs completed at the beginning of the current fiscal year at a cost of $1,000,000 are expected to extend the life of a bu original estimate. The original cost of the building was $6,552,000, and it has been depreciated by the straight-line method for 25 years. Estimated residi has been ignored. The related accumulated depreciation account after the depreciation adjustment at the end of the preceding fiscal year is $4,550,000. a. What has the amount of annual depreciation been in past years? b. What was the original life estimate of the building? years c. To what account should the $1,000,000 be debited? d. What is the book value of the building after the extraordinary repairs have been made? e. What is the expected remaining life of the building after the extraordinary repairs have been made? years 4 f. What is the amount of straight-line depreciation for the current year, assuming that the repairs were completed at the very beginning of the current year? the nearest dollar.

Name: Assignment 1O. MC.10-0651. MC.10-06612. MC.10-06713. MC.10-067.ALGO14
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Description: Assignment 1O. MC.10-0651. MC.10-06612. MC.10-06713. MC.10-067.ALGO14. MC.10-06815. MC.10-068.ALGO16. MC.10-07217. MC.10-07318. MA.10-150.Part119. MA.10-15820. MA. 10-158.Part121. MA.10-16622. EX.10-179A number of major structural repairs completed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Assignment 1
O. MC.10-065
1. MC.10-066
12. MC.10-067
13. MC.10-067.ALGO
14. MC.10-068
15. MC.10-068.ALGO
16. MC.10-072
17. MC.10-073
18. MA.10-150.Part1
19. MA.10-158
20. MA. 10-158.Part1
21. MA.10-166
22. EX.10-179
A number of major structural repairs completed at the beginning of the current fiscal year at a cost of $1,000,000 are expected to extend the life of a buildin
original estimate. The original cost of the building was $6,552,000, and it has been depreciated by the straight-line method for 25 years. Estimated residual
has been ignored. The related accumulated depreciation account after the depreciation adjustment at the end of the preceding fiscal year is $4,550,000.
a. What has the amount of annual depreciation been in past years?
b. What was the original life estimate of the building?
years
c. To what account should the $1,000,000 be debited?
d. What is the book value of the building after the extraordinary repairs have been made?
$
e. What is the expected remaining life of the building after the extraordinary repairs have been made?
years
4
f. What is the amount of straight-line depreciation for the current year, assuming that the repairs were completed at the very beginning of the current year? Rou
the nearest dollar.

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Step 3: c. The account should be debited to :

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