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On March 31, 2024, Susquehanna Insurance purchased an office building for $12,900,000 Based on their relative fair values. one-third of the purchase price was allocated to the land and two-thirds to the building Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Residual Value 10% of cost 10% of cost $ 33,000 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below.

On March 31, 2024, Susquehanna Insurance purchased an office building for $12,900,000 Based on their relative fair values. one-third of the purchase price was allocated to the land and two-thirds to the building Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Residual Value 10% of cost 10% of cost $ 33,000 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1 On March 31, 2024, Susquehanna Insurance purchased an office building for $12.900,000. Based on their relative fair values. one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Required 1 Required 2 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below. Building Furniture and foduras Office equipment Residual Value 10% of cost 10% of cost $ 33,000 Calculate depreciation for the years ended December 31, 2024 and 2025. Note: Do not round intermediate calculations. Depreciation 2024 2025
Transcribed Image Text:1 On March 31, 2024, Susquehanna Insurance purchased an office building for $12.900,000. Based on their relative fair values. one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Required 1 Required 2 Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land)? Complete this question by entering your answers in the tabs below. Building Furniture and foduras Office equipment Residual Value 10% of cost 10% of cost $ 33,000 Calculate depreciation for the years ended December 31, 2024 and 2025. Note: Do not round intermediate calculations. Depreciation 2024 2025
On March 31, 2024, Susquehanna Insurance purchased an office building for $12,900,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Required 1 Required 2 Residual Value 10% of cost 10% of cost Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land? $ 33,000 Complete this question by entering your answers in the tabs below. Land Building Furniture and fixtures. Office equipment What book values would be reported in the December 31, 2025, balance sheet (including land)? Book values on December 31, 2025:
Transcribed Image Text:On March 31, 2024, Susquehanna Insurance purchased an office building for $12,900,000. Based on their relative fair values, one-third of the purchase price was allocated to the land and two-thirds to the building. Furniture and fixtures were purchased separately from office equipment on the same date for $1,230,000 and $730,000, respectively. The company uses the straight-line method to depreciate its buildings and the double-declining-balance method to depreciate all other depreciable assets. The estimated useful lives and residual values of these assets are as follows: Building Furniture and fixtures Office equipment Service Life 25 20 10 Required 1 Required 2 Residual Value 10% of cost 10% of cost Required: 1. Calculate depreciation for the years ended December 31, 2024 and 2025. 2. What book values would be reported in the December 31, 2025, balance sheet (including land? $ 33,000 Complete this question by entering your answers in the tabs below. Land Building Furniture and fixtures. Office equipment What book values would be reported in the December 31, 2025, balance sheet (including land)? Book values on December 31, 2025:
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