**Task: Calculating Annual Depreciation Using the Straight-Line Method**To compute the annual depreciation that would have been charged from 1994 through 2003 using the straight-line method, fill in the calculated amount:- **Annual depreciation from 1994 through 2003**: $ [________] / yr. **Instructions:**The straight-line method spreads the cost of an asset evenly over its useful life. Simply divide the depreciable base by the number of years to determine the annual depreciation expense. 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.

Annual depreciation from 1994 through 2003: $50,920/yr

In 1993, Concord Company completed the construction of a building at a cost of $ 2,100,000 and fırst 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.

In 1993, Concord Company completed the construction of a building at a cost of $ 2,100,000 and fırst 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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