Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value. In January 2018, a new roof was installed at a cost of $300,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $160,000. (Depreciation from the years 1998 to 2017 is $55,000). What amount of depreciation should be charged for the year 2018... (a) Depreciation for the year 2018 (Assume the cost of the old roof is removed): $________ (b) Depreciation for the year 2018 (Assume the cost of the new roof is debited to accumulated depreciation - building): $_______
Greg Maddox Company constructed a building at a cost of $2,200,000 and occupied it beginning in January 1998. It was estimated at that time that its life would be 40 years, with no salvage value.
In January 2018, a new roof was installed at a cost of $300,000, and it was estimated then that the building would have a useful life of 25 years from that date. The cost of the old roof was $160,000. (
What amount of depreciation should be charged for the year 2018...
(a) Depreciation for the year 2018 (Assume the cost of the old roof is removed): $________
(b) Depreciation for the year 2018 (Assume the cost of the new roof is debited to
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