Dylex Corporation purchased an office building on January 4, 2004 for $770,000. At the time, it was estimated that the bulding would last for 25 yers nd woudhavea vend S00OnJanuary 4, 2011, a significant modification was made to the roof of the building at a cost of $40.B06 This modifcation cod not be identfed sepe compnet, ttwa tele th sadd an additional 8 years to the useful lifo. As well, it was estimated the residual value would be reduced to $102.500, at te end of the remed usete2015. toa se nproperty muarket, the residual value was revised to $0. The useful ife, however, was expected to remain an estmated on January 4,2011 The company uses te ghe thot of deredaonand is calculated to the nearest month. Please make sure your final answerts) are accurate to the nearest whole numbera) Calculate the annual depreciation that was charged from 2004 to 2010Annual depreciation $b) Calculate the annual depreciation that was charged from 2011 to 2014.Annual depreciation = Sc) Calculate the annual depreciation that will be charged from 2015 onwards.Annual depreciation =s

Annual depreciation refers to the standard rate which is imposed on the value of an asset in order…

Answered: preciation that was charged from 2004…

Business

Accounting

preciation that was charged from 2004 to 2010. preciation that was charged from 2011 to 2014

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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Question

Dylex Corporation purchased an office building on January 4, 2004 for $770,000. At the time, it was estimated that the bulding would last for 25 yers nd woudhavea vend S00On
January 4, 2011, a significant modification was made to the roof of the building at a cost of $40.B06 This modifcation cod not be identfed sepe compnet, ttwa tele th s
add an additional 8 years to the useful lifo. As well, it was estimated the residual value would be reduced to $102.500, at te end of the remed usete2015. toa se n
property muarket, the residual value was revised to $0. The useful ife, however, was expected to remain an estmated on January 4,2011 The company uses te ghe thot of deredaon
and is calculated to the nearest month. Please make sure your final answerts) are accurate to the nearest whole number
a) Calculate the annual depreciation that was charged from 2004 to 2010
Annual depreciation $
b) Calculate the annual depreciation that was charged from 2011 to 2014.
Annual depreciation = S
c) Calculate the annual depreciation that will be charged from 2015 onwards.
Annual depreciation =s

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