Crane Company constructed a building at a cost of $29,850,000. Weighted-average accumulated expenditures were $11,000,000, actual interest was $1,100,000, and avoidable interest was $590,000. If the salvage value is $2,300,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is: A. $703,500. B. $731,500. C. $761,000. D. $979,000.
Crane Company constructed a building at a cost of $29,850,000. Weighted-average accumulated expenditures were $11,000,000, actual interest was $1,100,000, and avoidable interest was $590,000. If the salvage value is $2,300,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is: A. $703,500. B. $731,500. C. $761,000. D. $979,000.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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General Accounting
![Crane Company constructed a building at a cost of $29,850,000. Weighted-average
accumulated expenditures were $11,000,000, actual interest was $1,100,000, and
avoidable interest was $590,000. If the salvage value is $2,300,000, and the useful
life is 40 years, depreciation expense for the first full year using the straight-line
method is:
A. $703,500.
B. $731,500.
C. $761,000.
D. $979,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f665bec-8bd0-484c-90fc-20bf1ab08fdf%2Fb5c117de-8c31-4902-8094-cd4bf0c05617%2Fsm9mwx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crane Company constructed a building at a cost of $29,850,000. Weighted-average
accumulated expenditures were $11,000,000, actual interest was $1,100,000, and
avoidable interest was $590,000. If the salvage value is $2,300,000, and the useful
life is 40 years, depreciation expense for the first full year using the straight-line
method is:
A. $703,500.
B. $731,500.
C. $761,000.
D. $979,000.
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