On January 1,2013, a new building was purchased at a cost of $30,000,000. Depreciation was computed on the straight-line basis at 4% per year. On January 1,2016, the building was appraised and was reported to have a fair value of $36,000,000 and an estimated remaining life of 15 years. This was the first revaluation made in the building since acquisition. What is the revised depreciation expense on the building for 2016?
On January 1,2013, a new building was purchased at a cost of $30,000,000. Depreciation was computed on the straight-line basis at 4% per year. On January 1,2016, the building was appraised and was reported to have a fair value of $36,000,000 and an estimated remaining life of 15 years. This was the first revaluation made in the building since acquisition. What is the revised depreciation expense on the building for 2016?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1,2013, a new building was purchased at a cost of $30,000,000.
What is the revised depreciation expense on the building for 2016?
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