In 1993, Concord Company completed the construction of a building at a cost of $ 2,100,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $ 63,200 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $ 525,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $ 21,000. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)
Annual depreciation expense-building
$
%24
Transcribed Image Text:Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.) Annual depreciation expense-building $ %24
In 1993, Concord Company completed the construction of a building at a cost of $ 2,100,000 and first occupied it in January 1994. It
was estimated that the building will have a useful life of 40 years and a salvage value of $ 63,200 at the end of that time.
Early in 2004, an addition to the building was constructed at a cost of $ 525,000. At that time, it was estimated that the remaining life
of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a
salvage value of $ 21,000.
In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the
original estimate.
Transcribed Image Text:In 1993, Concord Company completed the construction of a building at a cost of $ 2,100,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $ 63,200 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $ 525,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $ 21,000. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.
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