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My question is this: GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. For the general journal, I record 795 for depreciation expense, Accumulated depreciation- building at 328 and Accumulated depreciation- equipment is 467. But it only says that the building depreciation is correct. Building cost- $44800 Equipment cost- $11200

My question is this: GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. For the general journal, I record 795 for depreciation expense, Accumulated depreciation- building at 328 and Accumulated depreciation- equipment is 467. But it only says that the building depreciation is correct. Building cost- $44800 Equipment cost- $11200

FINANCIAL ACCOUNTING
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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My question is this: GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount.

For the general journal, I record 795 for depreciation expense, Accumulated depreciation- building at 328 and Accumulated depreciation- equipment is 467. But it only says that the building depreciation is correct.

Building cost- $44800 Equipment cost- $11200

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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