Peoples Corporation purchased a building on December 29, 2018 that cost $1,200,000 and occupied it on January 2, 2019. The owner estimated that the building would last 40 years with a salvage value of $150,000 using straight-line depreciation. In early 2022, Mr. Peoples learned that due to a permanent highway closure, the company needs to relocate at the end of 2024. He believes that the salvage value of the building at that time will be $800,000. Compute the amount of depreciation to record during 2022, and each of the two years thereafter. (Round your final answer to the nearest dollar.) Group of answer choices $133,333 $150,000 $107,083 $26,250
Peoples Corporation purchased a building on December 29, 2018 that cost $1,200,000 and occupied it on January 2, 2019. The owner estimated that the building would last 40 years with a salvage value of $150,000 using straight-line depreciation. In early 2022, Mr. Peoples learned that due to a permanent highway closure, the company needs to relocate at the end of 2024. He believes that the salvage value of the building at that time will be $800,000. Compute the amount of depreciation to record during 2022, and each of the two years thereafter. (Round your final answer to the nearest dollar.) Group of answer choices $133,333 $150,000 $107,083 $26,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Peoples Corporation purchased a building on December 29, 2018 that cost $1,200,000 and occupied it on January 2, 2019. The owner estimated that the building would last 40 years with a salvage value of $150,000 using straight-line depreciation . In early 2022, Mr. Peoples learned that due to a permanent highway closure, the company needs to relocate at the end of 2024. He believes that the salvage value of the building at that time will be $800,000. Compute the amount of depreciation to record during 2022, and each of the two years thereafter. (Round your final answer to the nearest dollar.)
Group of answer choices
$133,333
$150,000
$107,083
$26,250
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