Q 9.36: On April1, 2014, Howard & Sons Law Firm, whose fiscal year-end is September 30, purchased a building for $1.4 million. The building was expected to remain in service for 50 years. It is being depreciated using the straight-line method. If the expected salvage value was $800,000, what will be the book value of the building on September 30, 2025? A $1,092,000 $1,262,000 C $1,078,000 Qu $1,268,000

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Q 9.36: On April 1, 2014, Howard & Sons Law Firm, whose fiscal year-end is September 30, purchased a
building for $1.4 million. The building was expected to remain in service for 50 years. It is being depreciated
using the straight-line method. If the expected salvage value was $800,000, what will be the book value of
the building on September 30, 2025?
$1,092,000
$1,262,000
$1,078,000
Qu
$1,268,000
Study
- Apply
plant as
Hint
O Mark for Review
Confidence
SUBMIT
DELL
F9
F10
F11
F3
F4
F5
F6
F7
F8
44
2#
$4
6.
7
8.
3.
Transcribed Image Text:Q 9.36: On April 1, 2014, Howard & Sons Law Firm, whose fiscal year-end is September 30, purchased a building for $1.4 million. The building was expected to remain in service for 50 years. It is being depreciated using the straight-line method. If the expected salvage value was $800,000, what will be the book value of the building on September 30, 2025? $1,092,000 $1,262,000 $1,078,000 Qu $1,268,000 Study - Apply plant as Hint O Mark for Review Confidence SUBMIT DELL F9 F10 F11 F3 F4 F5 F6 F7 F8 44 2# $4 6. 7 8. 3.
Q 9.36: On April 1, 2014, Howard & Sons Law Firm, whose fiscal year-end is September 30, purchased a
building for $1.4 million. The building was expected to remain in service for 50 years. It is being depreciated
using the straight-line method. If the expected salvage value was $800,000, what will be the book value of
the building on September 30, 2025?
A
$1,092,000
$1,262,000
$1,078,000
Ab
Que
$1,268,000
Dif
St.
Study thi
• Apply dep
plant assets
Hint
O Mark for Review
Confidence
SUBMIT
DELL
F11
F12
F9
F10
F6
F7
F8
F3
F4
B88
&
%23
8.
9.
a
Transcribed Image Text:Q 9.36: On April 1, 2014, Howard & Sons Law Firm, whose fiscal year-end is September 30, purchased a building for $1.4 million. The building was expected to remain in service for 50 years. It is being depreciated using the straight-line method. If the expected salvage value was $800,000, what will be the book value of the building on September 30, 2025? A $1,092,000 $1,262,000 $1,078,000 Ab Que $1,268,000 Dif St. Study thi • Apply dep plant assets Hint O Mark for Review Confidence SUBMIT DELL F11 F12 F9 F10 F6 F7 F8 F3 F4 B88 & %23 8. 9. a
Expert Solution
Step 1

Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life of the assets

= (1400000-800000)/ 50 years

= $12,000

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