Problem 2: Sound Value - Square Footage Blue Leasing Inc. operates office spaces for rent in three buildings in the city. Building 1 - used for 15 out of 20 years of useful life, 15,000 square feet. Buildings of similar size and age were recently sold at P3,000 per square feet. • Building 2 - 60% depreciated, 20,000 square feet. A similar building was recently constructed for P7,000 per square foot. • Building 3-has 5 years out of 25 years of useful life remaining, P500,000 residual value, 16,000 square feet. A similar building was recently constructed for P8,000 per square foot.

Problem 2: Sound Value - Square Footage Blue Leasing Inc. operates office spaces for rent in three buildings in the city. Building 1 - used for 15 out of 20 years of useful life, 15,000 square feet. Buildings of similar size and age were recently sold at P3,000 per square feet. • Building 2 - 60% depreciated, 20,000 square feet. A similar building was recently constructed for P7,000 per square foot. • Building 3-has 5 years out of 25 years of useful life remaining, P500,000 residual value, 16,000 square feet. A similar building was recently constructed for P8,000 per square foot.

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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