Tristen Company purchased a five-story office building on January 1, 2022, at a cost of $5,700,000. The building has a residual value of $250,000 and a 20-year life. The straight-line depreciation method is used. On June 30, 2024, construction of a sixth floor was completed at a cost of $1,365,000. Required: Calculate the depreciation on the building and building addition for 2024 and 2025, assuming that the addition did not change the life or residual value of the building. (Hint: Calculate depreciation for the building and addition separately. Assume the addition has no residual value and an estimated life equal to the remaining useful life of the building.) Depreciation Year Building Addition 2024 2025

Tristen Company purchased a five-story office building on January 1, 2022, at a cost of $5,700,000. The building has a residual value of $250,000 and a 20-year life. The straight-line depreciation method is used. On June 30, 2024, construction of a sixth floor was completed at a cost of $1,365,000. Required: Calculate the depreciation on the building and building addition for 2024 and 2025, assuming that the addition did not change the life or residual value of the building. (Hint: Calculate depreciation for the building and addition separately. Assume the addition has no residual value and an estimated life equal to the remaining useful life of the building.) Depreciation Year Building Addition 2024 2025

Name: jlp.2 Tristen Company purchased a five-story office building on Januar
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Description: jlp.2 Tristen Company purchased a five-story office building on January 1, 2022, at a cost of $5,700,000. The building has a residual valueof $250,000 and a 20-year life. The straight-line depreciation method is used. On June 30, 2024, construction o

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
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